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The Future Of Star Alliance In S. America  
User currently offlineeastern023 From United States of America, joined Jul 2006, 860 posts, RR: 0
Posted (2 years 3 months 6 days 4 hours ago) and read 4150 times:

2012 is turning out to be a big year for Latin and South America and air travel. First and most importatly LATAM merger will come to pass and Star Alliance (at least so it seems) will lose its Brazilian Star (Sounds like the Varig old song theme but anyway...) to OneWorld. Avianca-Taca to merge and join Star along with COPA of Panama, these companies would give Star access to Deep SouthAm, but it will lack connectivity to Europe. Without considering the non-top service to Europe, one would Argue that AV can feed flights through BOG, but the truth is that the most desired (albeit jammed) connecting point is GRU (and that is going to OneWorld. Avianca Brasil seems to be making the effort to become bigger but the size of its operations is a far cry from what TAM is or Varig used to be. What do you see Star's long term strategy is for South America?


AA will Rise Again!
7 replies: All unread, jump to last
 
User currently offline2travel2know2 From Panama, joined Apr 2010, 2428 posts, RR: 1
Reply 1, posted (2 years 3 months 5 days 7 hours ago) and read 3730 times:

Avianca Brazil has a long way to go to fill the expectations Star Alliance has for the regional South American and Brazil -Europe markets.
If Avianca remains in Star - as it's rumoured Sky might be after them - AV Colombia will have the hard task to star some key routes out for GRU/GIG. But things may not be that easy since GRU is slot restricted and the available/affordable slots are roughly between 2300h and 0600h. Setting up an operation @ VCP to take care of Sâo Paulo should be dismissed as unrealistic as long as VCP doesn't offer a fast link with Sâo Paulo major areas.
If there's such a void in deep South America for Star Alliance then its airlines flying there should try to see if through 5th liberty are OK to operate some of the key international routes so to at least offer an Star Alliance presence in those major routes.
Flying via PTY or BOG among these countries: Chile, Argentina, Uruguay, Paraguay, Brazil (except MAO), Bolivia and Peru doesn't really make any sense.



I'm not on CM's payroll.
User currently offlinePDPsol From United States of America, joined Feb 2004, 1088 posts, RR: 6
Reply 2, posted (2 years 3 months 5 days 4 hours ago) and read 3590 times:

Quoting 2travel2know2 (Reply 1):
If Avianca remains in Star - as it's rumoured Sky might be after them

You are aware AV has not even formally joined Star yet. The carrier and its affiliates at TA are expected to join Star this May and reveal common branding.

The regional strategy for Star in South America does, indeed, revolve around AV. The addition of O6 to the alliance, as well as the transfer of its ownership from Synergy SA directly to AVIANCA-TACA Holding is also expected sometime in the future.

The region's most important market is Brasil, and has always been Brasil. Infrastructure and capacity issues at GRU are well known and AV will need to adapt its market strategy if it wishes to develop O6 into a full competitor to TAM, G3 and Azul.

AV's regional strategy also includes its hub at LIM, via its T0 affiliate. Together, LIM and BOG can be developed to provide key links between markets in North and South America, as well as intra South America. AV is already planning to station one of its A330-200 at LIM, with more expected.

AV, TA, O6, etc. have much work ahead of them.


User currently onlinejfk777 From United States of America, joined Aug 2006, 8089 posts, RR: 7
Reply 3, posted (2 years 3 months 5 days 3 hours ago) and read 3486 times:
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Quoting eastern023 (Thread starter):
2012 is turning out to be a big year for Latin and South America and air travel. First and most importatly LATAM merger will come to pass and Star Alliance (at least so it seems) will lose its Brazilian Star (Sounds like the Varig old song theme but anyway...) to OneWorld. Avianca-Taca to merge and join Star along with COPA of Panama, these companies would give Star access to Deep SouthAm, but it will lack connectivity to Europe

Star has a number of cities which can provide access to Europe from both Latin and European airlines. Bogota, Lima, Guatemala, and San Jose among them. AV/Taca could even merge with Copa and turn Panama into a true hub not just a Latin hub.


User currently offline2travel2know2 From Panama, joined Apr 2010, 2428 posts, RR: 1
Reply 4, posted (2 years 3 months 5 days 2 hours ago) and read 3425 times:

Quoting jfk777 (Reply 3):
AV/Taca could even merge with Copa and turn Panama into a true hub not just a Latin hub.

CM is a one-hub operation, CM (P5) presence in BOG is more of the focus type than hub. CM may not like the idea to share its hub with SJO, SAL, BOG and LIM hubs.



I'm not on CM's payroll.
User currently offlineyeogeo From United States of America, joined Jul 2009, 882 posts, RR: 14
Reply 5, posted (2 years 3 months 5 days 2 hours ago) and read 3390 times:

Quoting PDPsol (Reply 2):
The regional strategy for Star in South America does, indeed, revolve around AV.

In your opinion is Copa insignificant, or does it have a role to play? I notice you don't mention them at all in your post and you seem up to speed in the situation there.

Quoting PDPsol (Reply 2):
(Avianca) and its affiliates at TA are expected to join Star this May and reveal common branding.

So parent company and affiliates includes Avianca Brazil (T0) and Taca... any others?
The re-branding will occur simultaneously with the admission into Star? Interesting!

yeo



Yokoso! to my world
User currently onlinexiaotung From New Zealand, joined Jan 2006, 782 posts, RR: 0
Reply 6, posted (2 years 3 months 5 days 1 hour ago) and read 3317 times:

Quoting PDPsol (Reply 2):
You are aware AV has not even formally joined Star yet. The carrier and its affiliates at TA are expected to join Star this May and reveal common branding.

So AV-TA will join *A as one carrier not two with one IATA code?


User currently offlinePDPsol From United States of America, joined Feb 2004, 1088 posts, RR: 6
Reply 7, posted (2 years 3 months 4 days 20 hours ago) and read 3133 times:

Quoting yeogeo (Reply 5):
In your opinion is Copa insignificant, or does it have a role to play? I notice you don't mention them at all in your post and you seem up to speed in the situation there.

Of course CM is significant in Latin America to Star and its members. CM, however, does not operate a carrier within Brasil, and it has one hub at PTY, not two in South America such as AV, BOG and LIM.

CM has done extraordinary work developing markets between North America and deep South America via its PTY, including key destinations in Brasil, BSB, MAO, CNF and GIG, as well as MVD in Uruguay. Nonetheless, the scale of CM's business in South America will not approach that of AV and its myriad affiliates in Peru, T0, Ecuador, 2K, Brasil, O6, and, of course Central America, El Salvador, Costa Rica and Guatemala, TA, LR and GU.

Quoting xiaotung (Reply 6):
So AV-TA will join *A as one carrier not two with one IATA code?

AVIANCA-TACA will maintain its disparate carriers throughout the region, as it must for legal and regulatory purposes. However, it is expected they will reveal a common brand and, of course, integrate operational activities to the extent they are able to given legal and regulatory thresholds.

Latin America is still comprised of various nations, with sovereigns maintaining certain independent commercial aviation policies. Some nations have signed cooperation and liberalization agreements and AV is certain to take advantage of those. Of course, AV as a single carrier, with a single operating certificate cannot, as of yet, market and commercialize internal cabotage flights in other nations. One day, perhaps, the largest nations, Brasil, Colombia, Argentina will homogenize their policies and regulations. I do not foresee that occurring in the near future.

The LAN-TAM transaction, as well as the AV-TA merger have consolidated much of the region's commercial aviation sector. One can argue commercial efficiency and pan-regional coverage are in the cards for the future.


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