Friday , December 4 2020

Paulmann says that in Argentina there are still no "low cost" conditions and cashier into the cabotage business

The Chilean businessman, Ceo Sky Airlines, said he questioned the minimum rates, the high boarding fees and the restrictions to offer ramp services.

SKY Airlines is still far from consolidating its position in Argentina if current air regulations in the country are maintained. This is evident from the statements made by Chilean company Holger Paulmann, director of a trans-Andean environment.

The Chilean businessman questioned the minimum rates, boarding fees and the restrictions to offer ramp service.

"The flight revolution is on track, but the market has not yet been released enough to really let the low-price model be sustainable "said Paulmann to Ambito.

"It would be necessary to eliminate the minimum rate. Because now it's limited to selling tickets more than 30 days in advance and the truth is that 80% of the tickets are sold in the last 30 days on what is the market for short distances," added he.

In this line, he claimed that the price below 20% of the ticket offer may only be lowered according to the current scenario.

"And we must keep in mind that the biggest differentiator of the low cost offer is the price. But if the regulation does not allow you to sell below the cost of full-service operators, it's very hard to compete with that scenario," he said .

In the conversation with Ambito, the businessman specified that boarding rates on international flights did not affect long-haul flights, but "the effect on short-haul flights is" very strong ".

This connection discarded that the company is currently launching in the cabotage business.

"We believe that they are constantly changing all market conditions. We have always said that while the conditions in Argentina are not right, we can not enter the domestic market, "he said.

Paulmann also said that the devaluation changed the composition of passengers in Sky.

"If before the devaluation was 75% Argentinian passengers, the Argentinians are now only 25% and the rest are Chilean," he said.

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