Airlines LATAM seeks to introduce new low-cost airline

  • Airbus

According to aviation media, South-American airline LATAM seeks to establish a new low-cost carrier.

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The Chilean newspaper “El Mercurio” wrote, that the airline has applied a letter of intent to the aeronautical authority this March. LATAM plans to create its own low-cost carrier.

Since there is an increase of low-cost airlines in the region, LATAM needs to react in order to stay competitive. Airlines such as JetSmart and Sky Airline make life difficult for LATAM, said the newspaper. Especially on domestic routes, the newcomers have a competitive advantage towards LATAM.

In recent weeks, carrier Latin America Wings (LAW) had to temporarily cease operations because they couldn´t keep up with the low-cost prices of other airlines on domestic Chilean routes. Meanwhile, LAW lost its AOC and is currently in a restructuring phase.

LATAM is in need to restructure itself as well. “El Mercurio” stated, that on March 23, 2018, the Directorate General of Civil Aviation (DGAC) stamped the document for LATAM´s intention to start a low-cost airline.

It is highly likely, that the new airline does not operate with the LATAM colour scheme, but with another corporate identity. Two years ago, LATAM group said it would never be low-cost.

LATAM Airlines group operates with over 300 aircraft, including Airbus A319, A329, A321 and A350 XWB. Furthermore, Boeing 767, 777 and 787 are in the group´s fleet. Subsidiaries LATAM Airlines Argentina, Brasil, Chile, Ecuador and Peru belong to the group. Furthermore, the cargo segment contains the airlines LATAM Cargo Brasil, Chile and Colombia.

Source © LATAM A320neo

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