Chile-Brazil airline market poised for growth as Gol and Sky Airline break LAN-TAM's monopoly

The Chile-Brazil market is poised for rapid growth as competition has intensified, leading to an over 50% increase in capacity. Brazil's Gol and Chile's Sky Airline have both launched services on the Santiago-Sao Paulo route, breaking the monopoly of LATAM Airlines Group.

Gol and Sky have both been pursuing international expansion and could add other Chile-Brazil routes in 2015. LATAM is still the only non-stop operator between Santiago and Rio de Janeiro and is also planning to launch in late 2014 Santiago-Porto Alegre, a route previously served by Gol.

Sao Paulo is only the fourth international destination for Sky while Santiago has become the 15th international destination for Gol. There are more opportunities for both carriers in the international market but competing with powerful LATAM could prove challenging.