Latin American aviation industry discusses deregulation and rising costs

At the 22nd ALTA AGM & Airline Leaders Forum in Mexico City, aviation executives addressed significant shifts in the Latin American market. Key discussions focused on deregulation in Argentina, where the government's ‘open skies’ policy is encouraging new players. JOY Airline has been authorized to begin operations connecting Jujuy with Buenos Aires and Córdoba, while JetSmart Chile has received authorization to potentially operate domestic services in Argentina under ninth freedom rights. LATAM CEO Roberto Alvo noted that while the Argentine market is vital, the company's current priority remains international routes.

Industry leaders also raised concerns regarding operational costs and competitiveness. ALTA CEO Peter Cerdá reported a 79% increase in fuel costs and warned that high tax burdens in countries like Mexico could deter tourists. In Mexico, the AICM is undergoing a second phase of remodeling, set for completion by December 15, as the airport prepares for increased activity following the lifting of U.S. restrictions on new flights. Additionally, the Mexican government has opened the door for cargo airlines to return to AICM during non-peak hours, reversing previous restrictions on dedicated cargo operations.