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Old Feb 4, 2016, 1:48 pm
  #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.
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Old Feb 4, 2016, 2:19 pm
  #2  
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To be honest I'm finding it hard to understand what difference this'll make. As long as AR keep getting bailed out the rot will continue.
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Old Feb 4, 2016, 2:56 pm
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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!
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Old Feb 4, 2016, 7:47 pm
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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.
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Old Feb 5, 2016, 7:13 am
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I hear that the Air Europa service from Madrid to Cordoba will be via Asuncion....
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Old Feb 5, 2016, 8:25 am
  #6  
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Originally Posted by Marambio
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.
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.
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Old Feb 6, 2016, 11:16 am
  #7  
 
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Originally Posted by Eastbay1K
It will certainly be nice with the possibility of more competition, and I really hope that 4M is permitted to increase its fleet.
Governor Cornejo of Mendoza today announced that starting next March LAN will fly MDZ-LIM four times a week.

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.
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Old Feb 7, 2016, 7:35 am
  #8  
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Originally Posted by HIDDY
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.
Wooo Wooo... easy there Cowboy. Don't let your nerves have that skirt fall off !!!

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.
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Old Feb 7, 2016, 8:48 am
  #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.
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