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Chile, Colombia

By Ricardo J. Delpiano

growth of aviation in Latin America continues, marked not only by the success of airlines in the region, its consolidation in the markets, as well as the emergence of new operators, which make their income through innovative strategies aimed at continue entering the regional aircraft dynamics. The Colombian market, one of the largest in the continent reflects the situation in the region, as in the last few years has seen significant growth in its airline, as well as the number of passengers and cargo carried. The development of Avianca, TACA, COPA added the development of Colombia, Aires, the latter acquired by LAN in December 2010 and will become the new LAN Colombia, a subsidiary through which Chilean group will become the second largest in the country air coffee.

Printing a A320neo Airbus VivaColombia the colors of the new operator of the country that will compete directly with LAN segment of low cost. Photo: Money .

LAN Entering the Colombian air passenger market is not the only one this year will therefore also expected to take off AerOasis (company to which LAN is conducting operational consulting) and now the entry of Viva Colombia, a company created by Juan Emilio Posada, a former owner of the former ACES and participation has nothing less than Ryanair, the leading carrier of low cost flights in the world. Until last week, the now Viva Colombia, known only by the fancy name "The New Airline", which Posada sought to re-enter the airline business. On Wednesday, the Colombian newspaper El Espectador broke the news that Ryanair would be her partner Declan majority, which the Irish Ryanair materialize their entry into South America. In the press conference on Thursday, was launched VivaColombia with the goal of being the leading airline on low cost flights, which Colombia had only known Aires and now going to follow in part by LAN and the LASER model in that country.

VivaColombia said that start with a low cost model, just as I did in Europe, Ryanair and repeated his investment company in Indonesia with Tiger Airways, in the United States and in Mexico Allegiant VivaAerobus. The key to its product offering flights VivaColombia will be simple with no additional services to passengers, as IFEs system and standardization of its bid. The new airline will start operating in 2012 with a focus purely domestic operation initially in cities like Bogota, Medellin, Cartagena, Cali, Barranquilla and Bucaramanga, but also in the future could add international operations, strategy similar to the Irish airline VivaAerobus used in Mexico. Its fleet will consist initially of three to five Airbus A320 or Boeing 737-800 189 seats, Ryanair same settings used on its flights. The new airline will use the same livery that the Mexican VivaAerobus, only with the difference that correspond to the colors of the Colombian flag.

VivaColombia Building, LAN mean to be a direct competitor in Colombia, in a segment of low cost and so far was assured by acquiring Aires. Now the company must face this new player that will force the national airline to design an appropriate strategy, not only to meet VivaColombia, but to its competitors in the premium segments as Avianca and Copa.

With experience in Chile LASER model and its adaptation to the markets of Peru and Ecuador, LAN has already advanced some way on this point, can move forward in the way VivaColombia. This will depend on when Aires LAN integrates its operations. In the same vein, the operational resources that currently owns Aires, make the new LAN Colombia has one-off rather quickly as opposed to other national airline subsidiaries has in other countries, where virtually started from scratch. LAN operating with Colombia this year, the company will have months prior to study Colombian air market and how this is incorporated into the concept of the Latin American Network.

already in January, LAN Aires started the restructuring of changing the layout of its operations, eliminating international flights and most of them concentrated in the hub in Bogotá. By the time the airline will continue to use the Aires aircraft (Boeing 737-700 and Dash 8) until the end of the year or early next year begin to be introduced the Airbus A32S.