More rapid growth for Chile’s domestic market but LAN stronghold scares away potential new entrants

Chile's domestic passenger market grew by 16% in 1H2013, making it once again one of the fastest growing in Latin America. Chile's domestic market has now nearly doubled in size since 2009 with annual growth of nearly 20% in 2010 to 2012.

LATAM Airlines Group subsidiary LAN continues to dominate Chile's domestic market, accounting for 75% of the 4.6 million total domestic passengers in Chile during 1H2013. LAN's domination of the market is scaring away potential new entrants, including LCC groups such as Viva.

Chile and Russia are now the only top 25 domestic markets in the world that are not served by a single LCC. Russia is expected to see a return of LCC activity within the next year, leaving Chile alone on this undistinguished list.