Yet another small airline has launched domestic flights in Peru. Aviandina, which won its operating certificate in mid-November, started flying a 10-city network from Lima the next day, using two leased Boeing 727-100s and one Boeing 737.
This latest start-up brings to eight the number of local airlines scrambling to survive in Peru. It follows the recurring pattern of numerous, undercapitalised carriers with small fleets. Similar conditions led to the collapse of eight Peruvian airlines over a two-year period through to 1998.
AeroContinente was largely responsible for driving out its rivals then, and it continues to offer fares so low that most other carriers cannot compete. Daniel Ratti, chief executive of TACA Peru, told Airline Business's sister on-line publication Air Transport Intelligence that Peru's domestic market was difficult because of low yields. "The current fare levels make it unlikely to see newer aircraft entering into domestic services," he said.
But that does not seem to dissuade other carriers from adding capacity. In December, LanPeru planned to put a third 737-200, leased from Lan Chile, on domestic routes. In May this year, TANS will introduce its sixth 737-200.
Aviandina is leasing its three jets from AeroContinente. That raises eyebrows about its relationship with Peru's largest and most aggressive domestic carrier. Hernán Guerinoni Zanatta is Aviandina's director general, Zadi Desme, a former AeroContinente consultant, owns 30% of the new airline, and the rest is owned by an undisclosed foreign investor. Under Peruvian law, foreigners may own up to 70% of a local airline.
Frustrated by its inability to make money on domestic flights, TACA Peru has been pressing aviation authorities to grant it regional routes. In mid-December, after AeroPeru's creditors rejected the final proposal to revive the defunct flag carrier, it appeared that Lima would start reallocating AeroPeru's routes.
Source: Airline Business
