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Colombia aviation enjoys a rational supply-demand balance even with VivaColombia’s ample growth

Analysis

Colombia's aviation market appears relatively stable despite the steady growth of the country's low-cost airline VivaColombia through the establishment of a base in Bogota during 2014 in its quest to attain a 20% market share within Colombia.

For the first three months of 2014, VivaColombia's domestic market share grew to approximately 10% from 8% the year prior. The country's other domestic airlines also kept their respective shares at essentially the same levels year-on-year, which shows that the supply and demand balance is fairly rational.

The number of Colombia's international passengers also grew at a solid clip, reflecting the country's overall stability, decent economic prospects and a growing middle class that remains attractive to all airlines serving Colombia.

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