The rise of the low cost carrier

It may surprise some people to know that the Low Cost Carrier (LCC) phenomenon started over 45 years ago in the United States and over 30 years ago in Europe. However, it took a further 15 years for Latin America to see the first successful arrival of an LCC in the form of GOL Airlines in Brazil in 2000. GOL was quickly followed by Volaris, Interjet and VivaAerobus in Mexico and with Azul in Brazil, bringing the LCC model to Latin America’s long-distance bus passengers in the region’s two largest aviation markets.

The size of the continent, with its natural geographical boundaries including mountains, deserts and forests combined with limited, and often poor, road infrastructure makes the region ideal for converting more bus passengers to air passengers while at the same time stimulating the market. Yet, there have been few new entrants and limited penetration of LCCs in other countries in the region since the early 2000s until very recently.

Despite the still-difficult market conditions, we have seen the beginnings of a second wave of LCCs with new entrants and existing airlines branching out into many more countries, and they are more comfort and efficiency-minded than ever. Whether it is SKY Airline in Chile, Viva Air in Colombia and Peru, or Volaris in Costa Rica, these airlines are benefiting from the A320 Family’s unbeatable economics and performance, while their passengers are enjoying the aircraft’s superior comfort.

As we see more new entrants bringing the LCC model to even more countries including Argentina and Uruguay, the A320 Family is clearly the best suited aircraft for Latin America. Whether airlines are starting operations to some of the challenging airports in the region or looking to expand in the future, the A320 Family has proven that it has a level of performance that cannot be matched.

Paul Moultrie
Head of Marketing - Airbus Latin America & Caribbean
paul.moultrie@airbus.com

Haven't answered to the 2017 Latin America & Caribbean survey yet? You still have time! Click here