Colombian LCC Wingo: Copa becomes first Latin American airline group to test out multi-brand model

The Panama-based airline group Copa Holdings is testing out the multi-brand model with its LCC brand Wingo, which launched operations in late 2016 and is now operating 17 short haul routes. Wingo has already captured a 2% share of seat capacity in both the group's home markets, Colombia and Panama.

Copa is following a typical multi-brand strategy by using Wingo to take over unprofitable routes that were previously under the full service brand Copa Colombia, as well as launching new point-to-point leisure routes that would not be viable under its normal two-class full service product.

However, Copa has decided not to follow the typical multi-brand strategy of establishing a new airline from scratch; Wingo uses the Copa Colombia operators certificate, providing economies of scale and minimising risk, but potentially limiting the potential benefits.

As the first LCC under a Latin American full service airline group, Wingo is an experiment in many respects. If the initial trial using four single class 737-700s is successful, Copa could use Wingo to expand in Colombia and Panama as well as potential other Latin American markets while other full service airline groups may be compelled to establish their own LCC brands or subsidiaries.