Download Routes Development in Lima Contents

Routes Development in Lima
November, 2008
Contents
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Ideal location
First Steps
Initial Conclusions
Strategy
Marketing activities
Results
Challenges
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PERU, A SHORT OVERVIEW
Peru is ideally situated
PERU
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Population of 27.9 million
An increasingly strong economy characterized by strong GDP growth and low
inflation
Free Trade Agreements with the USA (already signed) and with main developed
economies
A rich archaeological /cultural heritage 10,000 years old
Offering opportunities for Eco-Tourism and Adventure Tourism
First Steps
• Lima Airport Partners began a Routes Development programm in
the last quarter of 2003
• The objectives:
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To attract a bigger number of airlines
To increase the number of frequencies from / to Lima
To increase tourism
Tp contribute to the economy
• The Methodology
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Evaluation of the air market, the existing routes and destinations from
Lima and the airline profitability vis a vis frequency / destination
increase plans
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Initial Conclusions
• With regards to passenger traffic, the main markets for Peru were
South and North America. Both represented then around 80% of the
total air market)
• USA alone represented more than 90% of the North American
market at the time
• However, passenger transit between the Americas via Lima was
very restricted (less than 1%)
Æ There was enough space to grow
Æ We focused on making Lima a prime hub for South America
Strategy
• To work together with the Peruvian Government (through
the Peruvian Tourism Agency – Promperú), identifying true
O/D markets and coordinating airline marketing efforts
• To define together incentives for airlines (commercial
promotions, afvertising support for a new destination) to be
financed by the airport / Government
• To continuously evaluate profitability of airlines (through
load factor) as a a way to react to market needs (ie.
discounts)
• To actively participate in Route Conference forums. Latin
American destinations aren’t always on the big carriers’
radars
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Marketing Activities
Promotions
To promote increased traffic to Peru, LAP encourages airlines to
increase their aircraft capacity, and their number of flight
frequencies and new destinations, through the following promotions :
(a) Superior-Category Aircraft Promotional Plan
(b) “Apoyo de ruta” (“Route Support”) Promotion
(c) New International Flight Frequencies Promotion
(d) New Domestic Flight Frequencies Promotion
TORONTO
NEW YORK
NEWARK
DALLAS
LOS ANGELES
HOUSTON
AMSTERDAM
ATLANTA
MIAMI
EUROPA
MADRID
MEXICO
ASIA
GUATEMALA
SAN SALVADOR
PANAMA
SAN JOSE
CARACAS
MEDELLÍ
MEDELLÍN
BOGOTA
GUAYAQUIL
• Privileged geographical
location: center of OCEANO
South
America and at sea PACIFICO
level
• All year good weather
conditions
• Regional hub: transfer
passengers have grown 50%
in the last year
QUITO
LIMA
LA PAZ
SANTA CRUZ
RIO DE JANEIRO
SAO PAULO
SANTIAGO
MONTEVIDEO
BUENOS AIRES
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JCIA: International Flights from Lima
369 Weekly flights from Lima
Airlines
• Latin America: 257 flights
• USA , Canada: 83 flights
• Aerolíneas Argentinas
• Lacsa
• Europe: 29 flights
• Aeroméxico
• Iberia
(one way frequencies)
• Aeropostal
• KLM
• Air Canada
• Spirit Airlines
• AirComet
• Taca Peru
• American Airlines
Non-Stop Domestic Destinations: 14
Non-Stop International Destinations: 24
• Avianca
• Continental Airlines
• Copa Airlines
• Delta
• Gol
• Lan Airlines
• Lan Perú
Jorge Chavez International Airport as a Hub
Grupo LAN
Taca
Destination : Latin America
Destination: Latin America
– Santiago
- Bogotá
– Caracas
- Sao Paulo
– Buenos Aires
- Sao Paulo
– Bogotá
- Guatemala
– Guayaquil
- La Paz – Santa Cruz
– Guayaquil
- San José
– Caracas
- Medellín
– Quito
- Medellín
– Mexico
- Quito
– San Salvador
- Montevideo
– Buenos Aires
- Rio de Janeiro
– La Paz
- Santiago
North America
– Miami, New York, Los Angeles
Europe
– Madrid
Weekly flights from Lima: 126 flights
Weekly flights from Lima: 307 flights
* According to itinerary September 07
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Passengers
Millones de pasajeros
7.5
5.64
6
5.0
4.5
4.3
4.1
2000
2001
2002
4.5
2003
2004
2005
2006
2007
Cargo and Mail
Millones de Kilogramos
250
225.4
196.9
200
160.3
171.5
177.1
2004
2005
136.7
150
114.2
100
50
0
2001
2002
2003
2006
2007
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Aircraft Movements
Miles de movimientos
100
92.8
90
80
77.3
72.1
70.3
70.2
72.3
73.2
2001
2002
2003
2004
2005
70
60
50
40
30
20
10
0
2006
2007
Challenges
• Latin American airports face the following:
– US carriers’ financial crisis reduce market opportunities for LA
airports
– Asian markets are more attractive than LA markets to
European carriers. Asia is closer to European airlines’
headquarters and more profitable than LA markets
– Airport infrastructure is still insufficient in some LA regional
markets
• But, still, there is some more space to grow…
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Thank you
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