The top representatives of low-cost airlines JetSMART, Sky Airline, Wingo and Flybondi agreed that aviation is a necessity, not a luxury, and that it contributes to strengthening countries’ economies and creating greater inclusion. It happened during the nineteenth edition of the ALTA AGM & Airline Leaders Forum, organized by the Association of Latin America and the Caribbean (ALTA), in Cancún (Mexico). In addition, executives highlighted the importance of smart regulations.

Moderated by Emilio Romano, Chief Executive Officer of Bank of America Mexico, the panel included the participation of Estuardo Ortiz, CEO of JetSMART; José Ignacio Dougnac, CEO of Sky Airline; Eduardo Lombana, director of Wingo; and Mauricio Sana, CEO of Flybondi, who shared their experiences of how some government actions in the region have boosted the air transport sector, while others have slowed it down.

Eduardo Lombana, CEO of Wingo, explained that the reduction of the airport tax, from $98 to less than $40, in Cartagena boosted tourism in the city, and when Colombia decided to reduce the value added tax (VAT) on tickets, from 19 percent to 5%, became one of the countries that recovered the fastest after the pandemic, achieving 48 million passengers. However, the return to 19% VAT caused a decrease in aircraft bookings.

“I think we have a task and a long way ahead of us. We must continue to sell aviation to our rulers as a social dynamizer. The great contribution of aviation is that it enables small companies and entrepreneurs to access air transport and visit places they had never thought of before,” said Lombana.

Ecuador has reduced Eco Delta and Tourist Power rates from June 2023

In Ecuador, since last June 1, Eco Delta (ED) and Tourist Power (PT) rates have also been reduced to make this market more competitive. Discounts apply to international tickets from José Joaquín de Olmedo Airport in Guayaquil and Mariscal Sucre Airport in Quito.

The Eco Delta rate collection, which applies to Ecuadorians traveling abroad, was found to correspond to 5% of the cost of the net service rate, with a maximum cap of US$50. For example, if the Net Value, Before Tax, fare is $100, the ED fee would be $5.

While the tourist power rate, which applies to foreigners traveling to Ecuador, will be 5% of the net value of the airline ticket, before tax, subject to a maximum cap of US$10. In this case, for example, a service cost of $100 would have a PT fee of $5.

IATA congratulates Ecuador on the reduction of Eco Delta and Tourist Power airfares

At the Congress in Cancún, the CEO of Wingo highlighted the need for an initiative to be taken as a union that would allow us to go a step further than what was achieved by the Montreal Agreement (celebrated on May 28, 1999, to protect passengers, baggage and goods at international flights), which consolidates regulations relating to passengers.

“I think we need to start seeing how we can make this issue of passenger duties and rights much more homogeneous, which is doing us so much harm in Latin America. We have so many regulatory differences between countries that really, in the end, what they do is hold the industry back.”

CEO of Sky Airline: ‘State policies that go beyond governments are needed’

For his part, José Ignacio Dougnac, CEO of Sky Airline, explained that in 2018, a significant reduction in airport fees on the Santiago-Mendoza route, achieved through an agreement with the governments of Argentina and Chile, significantly increased traffic between these destinations, generating higher tax revenues. income and the opening of business opportunities between both cities.

“We might consider doing that by integrating Latin America much more into their economies. I think there are great possibilities if we manage to have a long-term vision and a national vision, to develop aviation similar to what countries in Europe have today.”

Outbound ticket sales from Ecuador rise up to 40% after price cuts, but uncertainty affects travel to the country

Dougnac argued that the region and the aviation sector require the promotion of policies that go beyond the governments in power. “We have to try to work with the states, not the governments that are in power right now, to have policies that allow us to move forward in the long term towards an aviation that gives people access to actually being able to transport themselves.”

He also emphasized the importance of appropriate investments in airport infrastructure.

“If we make the right investments, we will definitely go for consumers, for connecting countries, for economies, for creating resources for the economies themselves,” Dougnac said. The businessman added that a long-term vision and good public-private coordination can make a difference in a period of 15 to 20 years.

“There is a huge potential in Latin America to strongly develop not only tourism, but also business between Latin American countries, which today is much more complex than business between European countries,” concluded the Sky.Airline CEO.