LATAM Airlines Colombia – Plans Are Underway To Grow Domestic Market Share In Colombia
CEO of LATAM Airlines Colombia Santiago Alvarez offers perspective on increasing competitive capacity in Colombia’s domestic market and demand within the country. He also explains LATAM Airlines Colombia could grow its domestic market share during the next few years to 24% to 30%.
Transcript
Santiago Alvarez:I hope it is going to be very rational, although we're hearing some news from Viva Colombia, the low-cost carrier here in Colombia, that are bringing around 7 planes in the next 12 months, and 3 of them are going to come from October to December, so we're going to see an increase in capacity. And we will see how that works for the industry in the domestic market. Demand is a little slow, because the prices have gone up because of the fuel prices and the devaluation. So demand is not responding as fast as we would like, but it will do okay in the next 2 years. We as LATAM Airlines are into a big project, a big transformation project, where we started unbundling our fares and going into branded fares, in a branded fares model. So we're just learning from it, it's been a year since we launched it, and the Colombian market is just getting used to it, and more and more passengers are understanding very well the model. Right now we have around 20% of the market share in the domestic in Colombia, And we expect to grow that in the next few years to around 25% to 30%. That's our goal.
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