ALTA CCMA & MRO Conference discusses the future of aviation in Latin America and the Caribbean
At the first panel of the ALTA CCMA & MRO 2022 Conference, we had a very productive discussion on the future of aviation in Latin America and the Caribbean with the participation of Hernán Pasman, Head of Operations of the Latam Airlines Group, José Antonio Montero, Chief Financial Officer of COPA and Julio Gamero, CEO of TAG Airlines. The panel was moderated by Alex de Gunten, Heico’s Senior Vice President and Chairman of ALTA’s Steering Committee.
May 16, 2022
Cartagena, May 16, 2022 – At the first panel of the ALTA CCMA & MRO 2022 Conference, we had a very productive discussion on the future of aviation in Latin America and the Caribbean with the participation of Hernán Pasman, Head of Operations of the Latam Airlines Group, José Antonio Montero, Chief Financial Officer of COPA and Julio Gamero, CEO of TAG Airlines. The panel was moderated by Alex de Gunten, Heico’s Senior Vice President and Chairman of ALTA’s Steering Committee.
Among the topics covered are the recovery of the industry after the pandemic, the next moments of aviation in the region of Latin America and the Caribbean and recent market movements, such as the consolidation of airlines in large groups. At the opening of the event, the CEO and Executive Director of ALTA, José Ricardo Botelho, cited the importance of the industry: “Without aviation, you cannot transport people and life. We know that where aviation reaches, it leads to development. For every 14 jobs generated by industry, another 18 indirect jobs are generated in our region. And this is the result of the work of everyone here”.
On the future of the industry, Hérman Pasman cites possibilities for the entry of new business models in Latin America and the Caribbean, such as ultra low cost groups. “I have the perception that having a low cost company coming in individually and in a particular country is very difficult, because the Latin American low cost model it is different of the American and European models, for example. So I believe in a consolidation of this type of group model for the region. For this cost industry is everything, beyond security. I think there will be an ultra low cost that will enter Brazil, for example, but now they have voted again in Congress that you cannot charge the bagage. That means not having a low cost in that country”.
For José Antonio Montero, the market is recovering much faster than they thought and at this point the company’s strategy is to have a lot of flexibility in its quantity of aircraft and fleet designation. On the resumption, Montero draws attention to the issue of cutting costs: “At times like the present, where there are inflationary pressures in some parts of the world or of material or human resources, there is a need for a little optimizing of suppliers to manage this inflation. This is an important and very serious topic for all of us who are united in the same industry”.
About the announcement of consolidation of Avianca with Gol Linhas Aéreas, with the creation of the Abra Group, Hernán Pasman, comments that it is a natural movement for the industry: “This consolidation in Latin America was obvious and is good news for the industry, for the passengers and for the growth of the region. We have to remember that this is a region that in the last 20 years has tripled. And forecasts say that in the next 15 years will double, so in 30, 35 years we will have a growth of seven times the industry”.
Julio Gamero, CEO of TAG, confirms that consolidation does not necessarily mean a reduction in the number of companies in the region and operations. “We have reached pandemic levels and today we have about 40% more passengers. We had a rapid recovery and we are in a very important growth plan with fleet renewal The total of important airlines in the region is growing and I believe we are creating an important chain”. About the company’s future in the region, Gamero cites simplification with the keyword.