Latin America & the Caribbean Air Transport Market Overview - - PowerPoint PPT Presentation

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Latin America & the Caribbean Air Transport Market Overview - - PowerPoint PPT Presentation

Jun 12, 2023 134 likes •662 views

Latin America & the Caribbean Air Transport Market Overview Aviation Industry Day Brasilia, August 2012 Increasing relevance and potential x2 GDP growth rate doubled in the last decades Source: IMF x6 Foreign trade volume multiplied by

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Latin America & the Caribbean Air Transport Market Overview

Aviation Industry Day Brasilia, August 2012

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Increasing relevance and potential

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x2

GDP growth rate doubled in the last decades

Source: IMF
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x6

Foreign trade volume multiplied by 6 over the last two decades

Source: CEPAL
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x11

Foreign direct investment increased 11 times since 1990

Source: CEPAL
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Inflation under control

7% inflation rate vs. average rates of over 100% in the 80’s and 90’s

Source: IMF
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  • 25%

Reduction in poverty rates

Source: CEPAL
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High Traffic Growth

Source: ALTA, IATA, AACO (Middle East), AAPA (Asia-Pacific), AEA (Europe), US DOT (US), CAAC (China) *China: from 2005 to 2010. Asia Pacific: international traffic only
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Bullish Long-Term Forecasts

Source: Boeing * Domestic
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In Perspective

LATAM USA Europe

Fuente: IMF, US Census Bureau, OAG
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Capacity by Country of Departure

Others 23% Panama 2% Peru 5% Chile 5% Colombia 5% Argentina 8% Mexico 16% Brazil 36%

Source: OAG, 2011
 *ASK (Available Seat Kilometers)
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Legacy LCC's

Source: ANAC Brasil, DGAC Mexico

LCC Penetration

Brazil Mexico

53.9% 57.9%

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International Capacity

LatAm-USA Traffic

USA Airlines 77% Latam Airlines 23%

LatAm-Europe Traffic

European Airlines 80% Latam Airlines 20%

Source: ALTA, AEA, US DOT
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The region keeps improving...

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...and so does the industry

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Younger Fleet

Source: Ascend (jets and turboprops with over 40 seats)

Europe USA LATAM ALTA

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47 Billion

Aircraft orders value in 2006-2011

Source: Ascend
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LatAm Jet Fleet by Generation

Source: Boeing

Older Mid Newer

20% 28% 52% 13% 16% 71%

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  • 48%

Fewer emissions per passenger km.

Source: ALTA airlines
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Safety

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Constantly Improving Safety

Source: IATA. Note: 2011 values estimated assuming no more hull-losses until end of the year

North America LATAM ALTA Members

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Seamless experience through alliances and consolidation

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Alliance Membership

In Global Alliances Non-Aligned

Source: OAG Note: 2011 figures include announcements that will be made effective in 2012
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Consolidation

Top 5 Groups Other Carriers

Source: OAG
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  • 45%

Decrease of average domestic fare in Brazil (adjusted for inflation)

Source: ANAC
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Will Governments keep pace with Industry’s efforts ?

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  • Safety
  • Infrastructure
  • Competitiveness
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Safety

Main Issue

  • Unstabilized approaches and runway

excursions

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Safety

Initiatives

  • Multi-angle strategy to reduce unstabilized

approaches

  • RASG-PA (ICAO/ANAC/IATA/ALTA)
  • Best Practices & Information Sharing

Programs

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Call to Action

  • Doubling of joint efforts to reduce runway

excursions

  • Adopt new technologies (PBN, etc.)
  • Promote IOSA as a standard in the region
  • Information sharing protection
  • Standardization of phraseology
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Infrastructure

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USD 4B

In fees and charges

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66%

Not reinvested

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> 30%

Of flights depart from congested airports

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Congested Airports

Highly Congested Congested


One of every three flights in the region departs from a congested airport

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Quality of Air Transport Infrastructure

Ranking 2007 Ranking 2011

Argentina 84 115 Brazil 57 93 Colombia 53 89 Costa Rica 68 80 Ecuador 71 73 El Salvador 25 33 Mexico 55 65

Source: World Economic Forum
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Call to Action

  • Reinvest in infrastructure for the industry
  • Don’t use airport privatizations as cash

cows...but as great opportunities to improve efficiencies

  • Promote integration of ATC in the region
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Competitiveness

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  • 43%

Decrease of airline unit costs in real terms since 1980

Source: ICAO
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5.4 million

Jobs generated by the industry in the region

Fuente: ATAG, 2012
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USD 125B

Contribution to the region’s GDP

Fuente: ATAG, 2012
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Unreasonably High Fuel Costs

Source: ALTA
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USD 1,000,000

Per aircraft operating the Sao Paulo-Rio de Janeiro route

Source: ALTA
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High Airport Charges, Monopolistic Earnings

Source: Annual Reports (2009)
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Restrictions on Foreign Capital

Airlines Other industries

Establish subsidiaries in

  • ther counties

✘ ✔

Sell controlling stake to nationals

  • f other countries

✘ ✔

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Call to Action

  • Regulate your natural monopolies so

they're efficient, not to harvest the most money from them at the expense of your

  • wn economies
  • Eliminate restrictions to foreign capital
  • Do not tax us as if were a vice or luxury

item instead of an engine of development

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Conclusions

  • Air transport is an engine of development
  • Highly competitive industry with reduced

margins

  • Requirements of significant long-term

investments

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Conclusions

  • Airlines cost structures affected by

regulatory aspects and monopolist/

  • ligopolist providers
  • Need to work together to improve

competitiveness to ensure healthy development of the industry

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Thank you