Sunday, April 3, 2011

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Mendoza-Santiago Sao Paulo: new target for Sky Airline

By Ricardo J. Delpiano

Sky Airline, second in the domestic air market, again showed interest in starting flights to Sao Paulo, a destination that would allow the airline to strengthen its international expansion. The announcement was made before the Court of Defense of Free Competition in the middle of the consultation process that the body opened to study the impact of the merger of LAN-TAM after the cessation of the operation after the appeal by CONADECUS.
As noted by the newspaper La Tercera, Sky Airline at least try to operate two daily flights in both directions, which are essential to ensure connectivity within the strategy which seeks to guide its expansion avoiding as far as possible face the big operators. weeks ago, the founder and owner of the airline, Jürgen Paulmann, in an interview with Diario Financiero (03/16/2011) announced that the company's plans is to become a feeder airline to other companies (feeder) which would ensure good occupancy of its planes and support the operation.
Sky Airline seeks to expand its horizons in the international market through the route to Sao Paulo. Photo: S. Blaise

towards this goal, landing in Sao Paulo is critical because Guarulhos today has become the main airport with the largest number of airlines in South America and where new operators have entered the world. Emirates, Qatar Airways, Turkish Airlines, El Al, Air China and from Singapore Airlines last week are just a few airlines and return to that country and in the future will increase, given the sporting events that take place in Brazil over the next years.

feeder strategy proposed by Sky Airline, is not new and is a formula known by many airlines. In fact TAM Airlines, has used this formula to capitalize on the route to Santiago, being able to offer two daily nonstop flights on Airbus A320 and Boeing 777-300ER. TAM Airlines as a member of Star Alliance, is responsible for carrying passengers connecting to flights of Lufthansa, Swiss, El Al, Emirates, Turkish Airlines and others.

While it is true that many large companies have their feeder to Santiago, this is not exclusive. For example we can cite the case that while Lufthansa operates from Sao Paulo to Santiago by TAM, Sky Airline flights offer connections through Buenos Aires Ezeiza.

As detailed in the newspaper La Tercera, the entrance to Sao Paulo, oriented within Sky plans, would have 14 weekly flights, which would allow the company to offer two daily flights in both directions (a morning and afternoon), thus having two banks of connections. Sky Airline currently has allocated seven weekly frequencies, which would have at least one flight daily.

regard to operational matters, the incorporation of the fourth Airbus A320 to further extend their reach into the international market, in the same way as it did in Buenos Aires and Lima, the two destinations operated by international aircraft. Since June 2010, Sky Airline has incorporated four A320-200 (CC-ABV, ABW CC, CC-ADP, CC-ADQ) and for the next few months plans to continue adding more units, although there was a gradual way, according to the size and horizon for the airline.

In the increasingly competitive airline market, Sky Airline is betting on responsible growth by focusing on their niche, learning-at least so far, the lessons of the past, when many airlines ventured to make a 1:1 competition with the big players without having the appropriate structure, which led them to fail and its demise. The plan has been developed by Sky borne fruit so far as we have seen through the figures of the Civil Aeronautics Board, now the airline is already the second largest worldwide, with 5.2% in the months of January to February.

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