Why no no-frills airlines in Latin America?

[EasyServis]

Whilst I realise that much of the Latin and South American industry is not deregulated, why is there no (excluding Brasil's Gol and BRA) no-frills airlines in South/Latin America?

I could see there to be a huge benefit of a new low cost airline in Argentina, Chile and Mexico where competition is either scarce or poor.

Can anyone bring about suggestions?

[OLNEY 1 BRAVO]

I thought the Brazilian carrier GOL were low-cost?:confused:

[4321zip]

Gol is a Brasilian low cost airline but I think that EasyServis could have been saying bar those two.

I think that it wouldnt work in Argentina. Whilst Argentina's geography would work for such an operation, the current depression means that fares on mainline carriers like Aerolineas and Southern Winds are very low.

However, Chile and Mexico which have a monopoly and duopoly respectively would definately be ripe for such an operation to increase competition and lower fares.

[MarkD]

one of the things that promoted LCAs in Europe was deregulation within EU routes, so FR (a nominally Irish airline) has only a fraction of routes terminating in Ireland but needs no freedom arrangements. If a Mexican LCA wants to fly from Montevideo to Buenos Aires, can they?

[EasyServis]

I think that there could maybe a market for domestic services within Mexico and maybe some transborder flights to the US as there is a large Mexican population.

Is the Mexican government strict with upstarts?
AeroMexico and Mexicana are owned by CINTRA who are they?
What happened to VuelaMex who tried low cost flights in Mexico?

[thefareguru]

I don't think that Vuelamex ever flew. But Azteca does, with lots of trans-border into the USA. In fact they just announced new flights GDL-ONT today. You could also check the pricing on Aviacsa which does lots out of MTY.

The Argentinians that have tried loco have gone bust. LAPA, which evolved into AirG is gone. And the devaluation of their currency didn't help.

GOL is the first and has done well.

Their populations just don't have the incomes to fly enough to support the proliferation and the great distances are also a detriment.

[EasyServis]

Is Azteca actually a low cost/no frills airline?

I do agree that there would not be a market for a loco in Argentina because of the downturned economy and the existing weakness of the airlines means that fares are already incredibly low as previously mentioned.

However I still believe it could work in Mexico if it already has these airlines do not promote themselves well

[bmibaby.com]

Azateca is not a no-frills airline, rather an independent carrier.

VuelaMex was launched with Boeing 717s and good financing however the Mexican government never gave the airline an AOC, without a reason, though many believe it was because the management had come from the recently bankrupted TAESA.

Mexico is definately ripe for a new low cost domestic and transborder airline, although it would have to be with a smaller type like the 717 as I dont know whether the domestic market could support 737-700s but who knows when no-frills airlines enter a market. Who thought that Hurn to Hahn would ever be a route?

[GlueBall]

TAME of Ecuador is and has been low cost on domestic sectors. B727s and F28s are operated by the commercial division of the Ecuadorian Air Force. Likewise, SATENA is a low cost carrier on domestic sectors, operated by the commercial division of the Colombian Air Force. INTER (Intercontinental de Aviacion, S.A.) is a low cost carrier on domestic sectors in Colombia, operating DC-9-10s. Aero Continente of Peru is a relatively low cost carrier on domestic sectors. All the above mentioned carriers feature single class service on their domestic routes.

[thefareguru]

GlueBall:
How can fares on these airlines be verified and booked? Are there online modes available to us? I tried Inter in the early summer and got nowhere.

[bmibaby.com]

I have to agree that none of these airlines are promoting themselves as the stereotypical low cost airline.

They do not have brash marketing advertising their low fares, they do not have a one type fleet, a booking website, a no-frills service and the list could probably go on . . .

[plantzzman]

Mmmm low cost in South America.
I always think of low cost airlines as starting up operating 737-200's or something like that-you know old work horses that are having the life beaten out of them in a final fling.
Having been to South America twice and noting what aircraft I flew on- 737-200 and 727-100/200 (one was older than I was at the time) the standard carriers were flogging dead horses so what would low cost start ups use-guess they would have to drag out Dakotas-the mind boggles.

[Lite]

I just came across this topic whilst searching for previous topics on no-frills airlines and actually think it would be quite interesting to see any new no-frills startups that use a similar business plan to Gol - with the typical no-frills formula but across South America.

I think the only place where a low cost, no frills airline would work right now would be Chile. The only competition to LanChile is Sky Airlines, and so there is a ripe market for a new airline.

Alternatively, I think Argentina could be a good place to start a new no frills airline. There are a few badly run and expensive carriers like SW and AR, that could do with competition.

[Squawk7777]

The other no-frills airline that existed in Mexico was Aerolineas Internacionales also nick-named the double lie. They were no airline and they did not fly internationally. Their operating certificate was pulled as far as I know.

The other not so no-frills airlines in Mexico are Aviacsa, Allegro, Aerocalifornia, Azteca and Magnicharters.

Mexicana Airlines will start a new charter operation in 767s, no idea if it is going to be no-frill to Europe and Latin America.

[Young Paul]

Hmm. Various things have to exist to enable a low-cost airline to function, which we take for granted in the US/Europe. Some of which are the acceptance of the idea of competition by the authorities, a large and wealthy enough population to want to fly regularly and with the business and leisure requirements to do so (you can travel vast distances in South America on very comfortable coaches with sleepers etc for very affordable amounts and actually get to city centres, rather than airports in the middle of nowhere - oh yes, with few baggage restrictions as well), a regime that doesn't have too high a level of corruption or too little security. Bear in mind that the GNP in South America is substantially lower, but the price of air travel is in most regards broadly comparable (since leasing costs, fuel costs etc are dollar-linked). I think Brazil is probably the only country which is large enough (i.e. Europe-sized!) and populous enough for this to work - and surprise surprise, we see GOL!

Nice thought - but I don't think its fully thought through.