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TACA continues expansion in Peru with A330s ahead of rebranding as Avianca

Analysis

TACA Peru is planning further expansion with the introduction of widebody aircraft, two A330s, which will be used initially to increase capacity to Buenos Aires, Bogota and Miami. The upcoming expansion at the Avianca-TACA subsidiary follows rapid growth by the Peruvian carrier over the last two years in both the domestic and international markets. TACA Peru earlier this year became the second largest carrier in the country's fast-growing domestic market, a position it has had for several years in Peru's international market.

The new fleet of Lima-based A330s should help Avianca-TACA close the gap with rival LATAM, which is by far the largest airline group in Peru and the broader South American market. Avianca-TACA has been focusing on expanding its Lima hub, which is well positioned as a north-south hub for the fast-growing intra-Latin American market, as congestion at its main hub at Bogota increases. TACA Peru is one of several TACA carriers being rebranded Avianca in 1H2013 as Avianca-TACA finally moves to a single brand three years after it completed its merger.

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