Peruvian aviation: LCCs are spreading and smaller airlines are at risk

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Peru has been one of the more dynamic markets in Latin America during the past few years. The country's relatively stable economic growth and lower trips per capita are driving solid passenger growth.

Those elements have given rise to the appearance of low cost operators in the country. Viva Air Peru debuted in 2017 and Chile's Sky plans to launch a new Peruvian airline in 2019.

As those airlines work to achieve their growth ambitions, Avianca has opted to draw down some of its domestic operations in Peru after dealing with a market has been challenging for many years. Avianca Peru had historically been the second largest airline in the country after LATAM Airlines Peru, but its passenger share has slipped as Peruvian Airlines has moved up to the second spot.

As Viva and Sky work to spread the low cost model in Peru, and LATAM aims to maintain its dominance, the positioning of the country's airlines could continue to shift.

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