Airlines free to set domestic prices
#1
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Airlines free to set domestic prices
http://www.buenosairesherald.com/art...omestic-prices
Hopefully this will bring some stability to the sector, and hopefully the next step will be to remove the stranglehold on 4M's routes and aircraft.
Hopefully this will bring some stability to the sector, and hopefully the next step will be to remove the stranglehold on 4M's routes and aircraft.
#3
Join Date: Mar 2005
Location: Paris, France
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Well, according to some friends in the (new) government the idea is to progressively stop bailing out AR over the next few years. This decision was due to big pressure from the coach companies lobby as the price bands hadn't been updated for a while and coach tickets were as expensive as airplane ones - thus nobody was taking the coach anymore. The government was wise enough to scrap the system altogether and now it's up to the market to decide prices.
There has been no official announcement yet but the days of the resident/non-resident fares are counted.
By the way, international airlines might bring interesting news to Argentina in the next months. Avianca and Copa have already applied for flights ex-ROS and Air Europa wants to operate the MAD-COR route. The more the merrier!
There has been no official announcement yet but the days of the resident/non-resident fares are counted.
By the way, international airlines might bring interesting news to Argentina in the next months. Avianca and Copa have already applied for flights ex-ROS and Air Europa wants to operate the MAD-COR route. The more the merrier!
#4
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Agree with the above post.
It will certainly be nice with the possibility of more competition, and I really hope that 4M is permitted to increase its fleet.
It will certainly be nice with the possibility of more competition, and I really hope that 4M is permitted to increase its fleet.
#6
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Join Date: Aug 2006
Location: Argentina
Posts: 40,211
Well, according to some friends in the (new) government the idea is to progressively stop bailing out AR over the next few years. This decision was due to big pressure from the coach companies lobby as the price bands hadn't been updated for a while and coach tickets were as expensive as airplane ones - thus nobody was taking the coach anymore. The government was wise enough to scrap the system altogether and now it's up to the market to decide prices.
There has been no official announcement yet but the days of the resident/non-resident fares are counted.
There has been no official announcement yet but the days of the resident/non-resident fares are counted.
I mean it's not as if domestic fares even resident ones are all that cheap which is the impression this news gives. I thought Macri was made of sterner stuff. Then again he has a mountain of other problems to sort out. There may be light at the end of the tunnel but it's a hell of a long tunnel.
#7
Join Date: Mar 2005
Location: Paris, France
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https://twitter.com/DifusionCornejo/...30033736028160
https://twitter.com/DifusionCornejo/...30783363018753
I don't know whether the flights will be operated by LP or by 4M.
#8
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This smacks of not wanting to rock the union boat. Never in a month of Sundays will it make AR profitable.
I mean it's not as if domestic fares even resident ones are all that cheap which is the impression this news gives. I thought Macri was made of sterner stuff. Then again he has a mountain of other problems to sort out. There may be light at the end of the tunnel but it's a hell of a long tunnel.
I mean it's not as if domestic fares even resident ones are all that cheap which is the impression this news gives. I thought Macri was made of sterner stuff. Then again he has a mountain of other problems to sort out. There may be light at the end of the tunnel but it's a hell of a long tunnel.
The Macri team is taking steps in the right direction. AR is rebalancing its fares but more importantly, looking to reduce waste of $$$ with all the political hires, overpriced procurement and other crony dealings that involve the Unions and a rotten supply chain. The fares that are going to be more significantly increased are the international routes, where AR was a lot cheaper than its international rivals.
From what I know, AR is looking to model its new business plan to something like what Thai is for the Economy of Thailand. A national carrier that properly serves all the relevant tourist destinations combined with state sponsored investments in infrastructure and incentives to the private sector to help growth in this area are a key consideration for Macri and his team. Its pathetic that tourists that come today and want to do a proper tour of wine country need to fly through EZE or AEP to get from Mendoza to Salta, or from Neuquén to Tucuman. Iguazu, Bariloche and El Calafate also need to be put into the equation, perhaps with seasonal service at first but this all needs to be put on the table and planned out. EZE is the magnet for visitors but Argentina is a lot more than just Buenos Aires.
#9
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Sorry Gaucho100K for upsetting the apple cart and getting my kilt in a tangle.
So AR are going to model themselves on Thai Airlines? In the name of the wee man....they're even more of a basket case than AR are having lost millions of dollars over the years and forecast to lose millions more this year. So I hope you're wrong on that one.
AR needs to be drastically changed and I think there are far better examples to follow than Thai. IAG have shown with IB things can be changed very quickly with cooperation from the unions and staff. In other words the unions need to be told change has to happen as the only alternative is to close down the airline and start again.
So AR are going to model themselves on Thai Airlines? In the name of the wee man....they're even more of a basket case than AR are having lost millions of dollars over the years and forecast to lose millions more this year. So I hope you're wrong on that one.
AR needs to be drastically changed and I think there are far better examples to follow than Thai. IAG have shown with IB things can be changed very quickly with cooperation from the unions and staff. In other words the unions need to be told change has to happen as the only alternative is to close down the airline and start again.