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LATAM Airlines would seek to create a low-cost airline

LATAM has been pressured by the entry into the market of "low cost" firms but had ruled out joining the model.


Devdiscourse News Desk 14 Apr 2018, 12:52 PM
  • LATAM is currently undergoing a strike by the union of crew members of a subsidiary. (Image Credit: Flickr)

LATAM Airlines, the largest air transport group in Latin America, would be looking to create a new low-cost airline, amid the boom in flights in that segment.

LATAM has been pressured by the entry into the market of "low cost" firms but had ruled out joining the model, despite applying certain of its rules on domestic flights.

The newspaper El Mercurio said that LATAM entered on March 23 a letter of intent to create an aviation company before the General Directorate of Civil Aviation (DGAC), without providing details of the content.

When asked about it, the airline told the newspaper that they are always "evaluating alternatives for the development of air transport in the region."

According to El Mercurio, the firm would explore the same option in Argentina, but it would have as an obstacle the price limitation.

With this, LATAM -which is currently undergoing a strike by the union of crew members of a subsidiary- would enter to compete with the local Sky Airline and Jetsmart, of the American fund Indigo Partners.

The group, with headquarters in Santiago, has operating units in Argentina, Brazil, Chile, Colombia, Ecuador, Paraguay, and Peru.

(With inputs from Reuters)

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