News
Latin American Airlines Booming
Source: elsalvador.com
Monday, August 23, 2010
The demand generated by the region's rapid economic growth should give ample room for air transport companies to grow.
The Latin American aeronautical industry was one of the few to record growth during the financial and economic crisis. The market, shaken by constantly growing demand, has seen big changes this year, first Colombian Avianca's purchase of Taca and later the creation of a new giant carrier with the merger of Brazil's TAM with Chilean LAN.
And there is still space for growth. Panamanian Copa is reportedly in discussions with the successful Gol from Brazil, taking advantage of their shared code agreements. These negotiations could lead to the creation of a third large regional airline.
Evidence of the market's attractiveness can be seen by the speed with which a group of investors has appeared with an offer to purchase and rescue bankrupt Mexicana.
The creation of these giant air carriers raises the question of how the continent's smaller airlines will continue to compete