By Ricardo J. Delpiano
changes on the world stage in recent weeks are forcing airlines to make adjustments to maintain profitable operation. The rise in oil prices has been the main factor that determined the adoption of contingency plans which have manifested themselves in different ways especially through a rate hike. However, unlike previous periods, current air traffic shows a recovery which could allow the sector in a better face the current situation.
To address changes in the scenario, the airline is conducting a series of operational settings including frequencies are reduced and cancellation of routes. Photo. Alejandro Ruiz
LAN concert as part of the international air transport, has not been alien to the situation of recent weeks and announced a restructuring plan that includes minor adjustments to operational, manifested mainly in frequency reduction and cancellation of some routes. However, the decision of the national company does not respond only to the current political context of the international system, but the mix of external and internal factors, the latter due to the lack of airplanes in the company in product delivery delays (Especially the B787) and the parallel increase in the operations necessary to meet expansion plans.
Considering the statistical analysis released by the company operational and timing of aircraft deliveries, indicate that the increase in capacity in recent weeks made answer increased efficiency through better use of current resources, despite the risk they have, especially when influenced by external factors. In recent months, the fleet of the company was faced with various contingencies such as weather factors in the northern hemisphere airport closures (New York, Lima), which often led to the detention of the limited fleet, carrying with it a decline in operational indicators such as timeliness.
As seen above, delays in deliveries of long-range segment (Boeing 787) have forced LAN adopt contingency plans to meet, as far as possible, the expansion plans . To this end, we chose to incorporate more Boeing 767-300ER units, which, despite the availability of slots in the production chain will be delivered only in the coming months and during 2012. The arrival of two Dreamliners would allow LAN to have two additional B767 immediately which would be needed to support the flight program. Without these aircraft, the company faces the decision to maintain growth with the same resources (a situation that poses high risk in the medium term, considering that the different variables affecting air operation) or reduce the plans, adapting to reality current.
The rise in oil prices has created the perfect setting to make the necessary operational adjustments. So LAN has announced a reduction in the frequencies to certain destinations in the region and the elimination of some destinations such as Toronto (suspended for several days), Paris and Cartagena in Colombia, but these are not the only ones according to reports in the media as mercury Diario Financiero. In the case of Paris, the route will be operated on July 16, to again offer this fate through a codeshare agreement with Iberia. In the case of Cartagena de Indias, the cancellation of the route from Lima (LAN Peru) responds to the operational restructuring, which contemplates the inclusion of newly acquired Aires. In that vein, the Colombian resort town will be addressed by future LAN Colombia through HUB Bogotá as of 1 May.
The reduction in operations will allow LAN lessen the burden on the fleet, allowing to better deal with contingencies that arise in the future, be they internal or external, allowing recovery of indicators. The arrival of more aircraft over the next few months will have a positive influence in the same sense, considering that this year will join around 20 Airbus A32S (A319 and A320) and three Boeing 767-300ER for American routes. On intercontinental flights, the elimination of Paris will also have additional Airbus A340 equipment to maintain operations Madrid, Frankfurt (destination that will have a daily flight), Auckland and Sydney.
To ensure and enhance connectivity, LAN Airlines has also expanded its interline agreements with other companies like Jetstar Asia Pacific and Jet Blue for the region of North America and the Caribbean, valid and widely used practice in transport supply air to expand to new places or meeting places where demand does not warrant proper operation.
Thanks to the versatile business model developed, the company has been able to successfully deal with different scenarios presented, without major adjustments that affect passengers and customers.
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