New entrant airlines could flood Peru’s domestic market with excess seats warns Carlos Palacin, president of Peru’s airline association, because the five carriers now serving the market “offer 15,000 daily seats when the demand is only for 6,500”.
Palacin questions the need for airlines such as Aerolineas del Peru, which Spain’s Marsans group will launch in August. The Peruvian government, however, is promoting new carriers and potential entrants have wondered if LanPeru, which has 76% of the domestic market, might lose some of its dominance following widespread displeasure over a LanPeru in-flight video which featured Lima’s slums and warnings about street crime. Marsans head Antonio Mata cites the resulting tensions between LanPeru and the government as a reason for accelerating his plans to launch Aerolineas del Peru.
Source: Airline Business
