Argentinean market is not expanding and is not attractive basically because:
-There is no incentive policies from the State towards aviation (i.e. promoting the open skies policy), even worst…the Government dictates the max prices that can be established by the airline companies.
-The government promotes a totally unfair competition trough Aerolineas Argentinas. (pls don’t forget that the state owned company financial status is in red and the government still insists to put money in).
- Unions are too rigid and inflexible that generally this inhibits the private investment.
There is no complete certainty whether the 787s are going to totally substitute the 767 fleet or if they are going to just be added to increase the capacity of the long haul fleet. However, if in the future LAN management becomes conscious that due to the increasing demand it’s not necessary to replace the 767, personally think that not any of them will be swapped hence having LAN more than enough capacity to take over Tam’s operation.