Latin America: An Emerging Market for Airline Businesses
Although
the Latin American air travel industry hasn’t experienced rapid growth
in the past, the current process of rebranding LATAM is likely to
significantly change that in the coming years!
Changes
can already be seen everywhere in the Latin American airline industry;
in the airports, by the size and quantity of planes in the sky and by
the carriers competing in the region.
The
Latin American airline industry has made significant improvements in
the last decade and Latin America is proving itself as one of the most
attractive markets in the world for aviation businesses. This is in no
small part thanks to a couple of joint ventures and a growing number of
airline agreements and memberships. In fact,
the merger between Chile’s LAN Airlines and Brazil’s TAM Airlines in
August, 2010, has actually helped carry these two South American
airlines into the spotlight. Many Latin American carriers are now
looking to work together with global airline leaders and are seeking
greater connectivity and financial investment.
Air Traffic Growth in Latin America
According
to a recent study, Latin America is the most urbanized region on the
globe, and this is the number one reason for the current growth of air
traffic in Latin America. As the number of air passengers increases,
naturally, the demand for convenient transportation from one city to
another within Latin America has also increased. In fact, the domestic
airlines in Latin America have already started to grow rapidly and are
expected to continue this growth and make even more of a profit in the
coming years.
The Rebranding Process
The
rebranding process of the LATAM Airlines Group started in the year
2015, and will be completed by 2019. Some of the notable changes in
LATAM include improved passenger experiences, fleet management,
development of cabin interiors etc. According to 2016 statistics, LATAM
is now considered amond the largest airline groups in terms of network
connections, with 319 aircrafts offering air transport services to 133 destinations in 23 countries.
Another statistic shows that the average fleet age in
Latin America is lower than the fleet age of many other notable airline
companies. As of 2016, the average fleet age in Latin America is only
ten years, and most of the fleets will be replaced over the next two
decades.
Latin America is a very attractive destination and will surely continue to thrive. According to a recent report by the FAA, the Latin American aviation industry is expected to experience growth of 4.5% per year until 2034. The continuing growth in Latin American is undoubtedly conveying a message to the world about what this region can offer to enhance the entire airline industry.
