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Ecuador Aviation: liberalising and courting LCCs

Analysis

Growth among Ecuador's airlines has slowed during the last few years based on seat deployment as the country dipped into a recession during 2016. Even as it returned to positive economic growth in 2017, Ecuador's growth prospects remain below historical levels for 2018 and 2019.

Ecuador's largest airline state-owned TAME has also cut its seat supply during the last few years, and more recently has undertaken a restructuring with loans from the government as it pledges to bolster revenue and slash costs.

Low cost airline penetration in Ecuador remains low. JetBlue offers service from Fort Lauderdale to the country's largest airport, Quito, and Spirit in Mar-2018 launched flights form Fort Lauderdale to the country's second largest airport, Guayaquil. Even as Ecuador holds promise for passenger stimulation, expansion of air travel could remain tempered until its economic growth returns to more normal levels.

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