ALTA Forum Highlights the Contribution of Aviation to Socioeconomic Growth in Latin America

Nassau, Bahamas, November 1, 2024 – With a 250% increase in passenger numbers over the past 20 years, aviation in Latin America and the Caribbean is emerging as a key player in regional development. At the ALTA AGM & Airline Leaders Forum, experts discussed how air connectivity can transform entire regions, boosting trade, tourism, and job creation.

Beatriz Guillen, Global Sales Director at Iberia, emphasized the significant potential of Latin America and the company's commitment to growth in this market. “Before the pandemic, approximately 20% of Iberia’s passengers were from the region. Now, that percentage has risen to around 55%. It is a region that is constantly expanding, and we will continue to invest in it,” Guille stated.

Aviation is also a crucial pillar for the economic development of Colombia. Gilberto Salcedo, VP of Procolombia, reported that over six million foreign visitors arrived in the country in 2024, injecting nine billion dollars into the economy, with three billion directly benefiting the local economy. “This reaffirms our purpose, with a 15% increase in visitors in the first half of the year and a continuous growth of 9% until September, positioning Colombia as the second country with the highest growth rate,” Salcedo explained.

Olga Ramírez, president of the Colombian Association of Aviation Law (CADA), reiterated that aviation serves as a means for the development of other industries and must continue on the path of liberalization, which has yielded real and tangible results. Mauricio Sana, CEO of Flybondi, agreed that appropriate and intelligent regulations are essential for the sector's prosperity. “Aviation in Argentina plays a crucial role beyond tourism, representing 8% of the region's GDP and promoting development. It not only connects destinations but also facilitates economic mobility and social advancement,” Sana stated.

Ecuador's Minister of Tourism, Mateo Julián Estrella Durán, highlighted the importance of revising tax policies to enhance the sector's competitiveness. “We maintain a continuous agenda with the industry to develop initiatives that expand connectivity and promote sustainability. We use sector data as a reference, and ALTA’s competitiveness index indicated that we could improve regarding rates. After the reduction, we saw an increase in the number of passengers,” commented Durán.

Tiago Sousa Pereira, president of ANAC Brazil, also emphasized the need for a regulatory system that favors innovation. “We are focused on adjusting our regulations by prioritizing safety and promoting initiatives like open skies to harmonize safety standards with regional authorities,” he explained.

For Alan Viana, partner at the law firm MJ Alves Burle Viana, the key word for the industry-government relationship is education and communication. “Aviation is a complex industry that requires understanding to prevent the government from interfering by generating additional costs or limiting profits. We need this balance to be well-established to ensure healthy and sustainable airlines, as sectors like tourism and even public health are impacted without it.”

Marcelo Guaranys, partner at Demarest Advogados, commented on the efforts Brazil has made to promote competitiveness. “In the last 15 to 20 years, we have sought to increase competition and reduce economic regulation in the aviation sector. We changed legislation, created the National Civil Aviation Agency, and adopted measures such as charging for baggage and eliminating the foreign ownership limit, all with the goal of attracting more airlines, especially low-cost ones.”

Air connectivity, as emphasized by the leaders present, is essential for strengthening emerging economies and achieving sustainable goals. However, for the sector to continue growing, a regulatory environment that balances safety, innovation, and competitiveness is indispensable.