Growth of Latin American airlines continues to be hindered by burdensome taxes, inefficient customs procedures and poor infrastructure, executives say on the first day of Routes Americas.
“The Caribbean is a high-fee, high-cost destination for air travel,” Brian Challenger, chairman of the Caribbean Tourism Organization, says on 17 February.
Eduardo Iglesias, executive director of ALTA, says he would not yet encourage airlines to add flights to Brazil.
“If it was my airline I would probably say wait. Brazil needs to understand that unless they really tackle the reforms the country needs, nothing will change,” he says.
Brazil’s government has shown “no willingness at all” to address aviation-related issues, such as poor infrastructure and a slow customs system, Iglesias adds.
He suggests governments in Latin America and the Caribbean set up agreements to waive visa requirements for air travelers – a benefit some governments already afford cruise ship passengers.
“Why can’t we replicate that same experience with the airlines,” Iglesias says
Grupo Viva chief executive Joe Mohan notes that travelers can take a bus between seven Central American countries for $60, but airline fees between those countries can reach $150 per passenger.
He points to Cartagena as an airport that has successfully reduced its fees. Passengers at that airport used to pay $90 each, but with government financial assistance, the fees have been reduced to about $20, which has stimulated traffic.
While some countries badly need upgraded airports, Mohan also against investing too much. Some airport need to charge $90 per person because they invested $50 million in upgrades, he says.
Source: Cirium Dashboard
