28-May-2013 3:58 PM

Synergy CEO questions future of LCC model in Latin America

Synergy Group owner Germán Efromovich, Avianca's largest shareholder, questioned the future of the LCC model in Latin America, saying, "I do not think that in the coming years there is room for this type of model in Latin America" (Arecoa/El Colombiano, 24-May-2013). Mr Efromovich said costs are the same between LCCs and legacy carriers in terms aircraft, engines and fuel, and said, "They [LCCs] charge less because they have two to three years of honeymoon in which new aircraft do not consume much in maintenance. After that time, if you are not in a market with sufficient demand, [strong performance] is difficult to follow." Mr Efromovich added, "Not all people want to travel without being offered a coffee, sitting in a fetal position or without being able to plug in your laptop for work."

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