Peru's domestic passenger numbers increased 14.5% year-on-year to 3.49 million in 1H2012, according to Peru's Directorate General of Civil Aviation and as reported by aeronoticias.com.pe. LAN Peru captured the largest share of the domestic market with a 61.8% share in 1H2012, carrying 2.4 million passengers, followed by TACA Peru with 12.56% domestic market share and Star Peru with an 11.5% share.
Peru domestic pax grew 14.5% in 1H2012, LAN Peru domestic market leader
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The Viva Group settles on Peru amid changing competitive dynamics in Latin America
Peru has emerged as the country of choice for the third airline of the Viva Group, which aims to launch its Viva Air Peru during the first half of 2017. In the past Viva has toyed with the idea of spreading its low cost brand to Peru, but chose to pursue an opportunity in Costa Rica that it later abandoned due to the high operating costs imposed on the country’s airlines.
Peru has numerous attractive attributes for a low cost start-up, including favourable economic growth, the absence of a true low cost airline and strong domestic passenger demand. Trips per capita for Peru are similar to the still-developing (and growing) markets of Mexico and Brazil, which each feature low cost competitors.
But the current iteration of the Viva franchise faces some changing dynamics in the Latin American market place – primarily the recognition by the region’s largest airline groups of the LCC threat, and their adoption of new tools to compete more effectively with existing and aspiring LCCs.