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Air Market Analysis February 2011 Ryanair

By Ricardo J. Delpiano

The Civil Aeronautics Board gave its monthly traffic report for the month of February 2011. In that month were transported 1,171,634 passengers in domestic and international flights, which compared to the same period of 2010 represents a significant 24.8% growth compared to the same month last year with 1,171,634 passengers carried both domestic and international flights. This growth is not showing since July 2007, the month in which experienced a growth rate of 24.9%. The increase was just pre-crisis years and was largely triggered by changes in the aviation market after Chile began to experience the new strategies developed by the airlines and the entry of new operators at the time.

In the January-February were carried 2,414,835 passengers on domestic and international flights, which compared to the same period of 2010 representing a growth of 19.1%. In that period, international passenger traffic accounts for 46.7% of the total transported, with 1,127,619 passengers. Meanwhile, domestic passenger traffic (cabotage) is 53.3%, with 1,287,216 passengers carried.

Results shown, indicate that air passenger traffic in the summer managed to double in recent years due to a combination of factors that have been central to the process among which are: new business strategies developed by airlines, the low exchange rate which has facilitated the purchase of travel at a lower price, the better off the country's economy compared to previous years, a greater willingness credit obtained through bank financing, tour operators and trading houses. In this also adds the alternatives developed by the airlines through their tour operator divisions that have helped the marketing of flights, especially in the charter segment as in the case of PAL Vacations (PAL Airlines) and Skytours (Sky Airline).

International Passenger Traffic

In February, 545,475 passengers were transported to or from international destinations with a rise of 24.2% over the same period of 2010. Meanwhile in January-February were carried 1,127,619 passengers on international stages with a growth of 16.6% compared with the same period of 2010.

For airlines, LAN Airlines remained the leading airline in international traffic with 46.5% in February, carrying 253,450 passengers with a growth of 16%. For the first time in history, Sky Airline was ranked in second place with a share of 5.9% to 32,777 passengers and strong growth of 246.5%. Lies behind TAM Airlines, American Airlines, COPA Airlines with a share of 4.7%, 4.4% and 3.7% respectively. In the year to February, the positions of these five airlines continue, placing LAN Airlines first with a share of 45.6%, followed by 5.9% Sky Airline, TAM, American Airlines and Copa Airlines with 4.9%, 4.5% and 3.5%.

The strong growth recorded by Sky Airline responds to as many international operations the airline has made since the launch of its routes to Buenos Aires and Lima, to which are added charter flights season. In the analysis of the table below shows the growth of major companies operating in the country, meets the increased capacity that the companies have done, either through a material change in the flight or through increased frequency.


table showing the results of air traffic lines in February 2011. Source: JAC

cabotage

In February, 626,159 passengers were transported in Chile to maintain its positive trend and reflects the increased summer traffic, reporting a growth of 25, 3%, compared to the same period last year. In the year to February were carried 1,287,216 passengers in Chile with a growth of 21.4% compared with the same period of 2010.
Meanwhile
airlines and their participation in the aviation market, Civil Aeronautics Board indicates that in the February LAN Airlines (LAN Chile and LAN Express) won a share of 76.3% with a growth of 34, 9% to 447,756 passengers. In second place is Sky Airline with a share of 18.4% and an increase of 49%, while PAL Airlines recorded an increase of 4.8% and strong growth of 124.3%. In the year to February 2011, LAN Airlines won a share of 76.2%, followed by Sky Airline PAL with 18.5% and 4.7% Airlines.


Air Traffic national market share in February 2011. Source: JAC

Airfreight

freight transport in Chile registered an increase of 23,800 tonnes in domestic and international flights, which compared with the same period of 2010 representing a growth of 16 %. In the two months of 2011, 48,088 tons were transported in international and domestic flights with an increase of 9.1% over the same period last year. In line with the international, international cargo reported a 18.3% increase compared with February 2010, moving 21,742 tons. Accumulated to February, transported 43,826 tons which is equivalent to a growth of 11%.
Finally, the domestic burden showed a drop of 3.5 percentage points over the same period of 2010, carrying 2,058 tonnes in Chile. Between January and February were transported 4262 tonnes in the country with negative growth of 7.8% compared with the same period of 2010.
table showing the transport of international cargo during February 2011. Source: JAC

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