The exit of the market of the Colombian airline Livehas fulfilled some of the fears that the industry anticipated since the announcement of its financial crisis, among them, the increase in the price of tickets.
And it is that although the airlines have tried to take care of the prices, according to the tourism portal travel itin these 12 days of cessation of operations, some routes where the low cost operated the rates have risen up to 14%.
(Blockades at the José María Córdova airport due to the Viva Air crisis).
In a comparison of the round-trip prices found in the first week of March (after Viva’s suspension) versus the last week of February (before the suspension), from 21 to 27, without 28, which was the day of the suspension, The travel portal found that the routes where Viva operated with other competitors, the prices rose considerably.
In the case of the route Medellin – Monteria it was evidenced that now the price of a ticket for this route costs $388,210a 14% more expensive than before the suspension. The same happens on the road Medellin-Barranquilla where its current average price is $396,081, 6% more expensive than before the suspension.
(When would the airline JetSmart start operating in Colombia?).
Other examples of this rise occur on the routes Cali – Cartagena, where the current price is $480,434, 3% more expensivein Cali – Santa Marta, the price is $538,845, 6% higher and in Pasto – Medellín the value of the ticket is $544,082, 5% more expensive than before.
It is worth remembering that the low cost served the 20% of air demand, now that responsibility fell on the other 80% of the market. In addition, this situation becomes much more tense if one considers the rise in prices that this service has had since 2022.
In April of that year, the value of fuel unleashed an unprecedented effect on the price of tickets and in February 2023, according to the National Administrative Department of Statistics (Dane) this service has had an increase of 42.8% compared to 2022, which would call into question the accessibility of this public service in the future.
With one operator or none
In addition, with Viva’s exit from the market, more than nine national routes have been left without anyone to operate them, and at least another five were left with a single company to meet demand.
According to data from the Civil Aviation, Avianca he stayed with the routes Cali – Riohacha, Riohacha – Bogotá and Riohacha – Medellín as a result of the cessation of operations. In addition, Ultra Air remained the only operator on the routes Cartagena-Pereira and Pereira-Santa Marta.
(Avianca-Viva integration decision would be at the end of March).
According to sources consulted by this medium, there would also be changes to the route Bucaramanga – Cartagena where only the airline would remain operating Avianca and in the case of the path Santa Marta – Pereira and there would be Ultra Air.
And although there is an operator on these routes, there are others that with the departure of Viva were orphaned.
According to Aerocivil data, these routes are from the Colombian Caribbean Cartagena – Cúcuta, Cartagena – Neiva and Cartagena – Pasto.
(According to the aviators’ union, Avianca ignores labor agreements).
others are Pasto – Medellin (José María Córdova international airport, hereinafter MDE), Pereira – Riohacha and Pereira – San Andrés.
From the airport Black river in Medellín, where the airline originated and had its main headquarters of operations, the routes were no longer served Medellín-Valledupar, Medellín – Armenia and Medellín – Villavicencio and there are no other airlines that offer them. According to sources consulted, other routes that would remain without operating from this airport are bound for Mexico and sao pauloalso from Cartagena to Mexico.
The fact that one or no airline operates in these destinations has a notable impact on the growth of tourists that these destinations have had.
(JetSmart gets endorsement to compete in the Colombian air market).
Between January 2022 and January 2023for example, the path Cali – Riohacha had an increase in transported passengers of 18%, with a total of 4,736 passengers. Followed by this, is the route Cartagena – Cucuta which had an increase in its mobilized passengers from 16% with 6,008 in Januaryoy the route with the greatest growth was Pereira – Riohachawhich had a growth of 82% with 2,979 reported travelers.
If the suspension of operations continues and goes to Viva liquidation, these routes would present difficulties to operate. The air authority assured that it hopes to make a decision on the integration of Avianca – VivAt the end of this month, he also showed a list that requires the Government to prevent a market concentration from being generated, for which Viva must return strategic slots in the hours of greatest influx in the El Dorado airport.
Transportation, an item that hits inflation
Although in February the consumer’s price index (CPI) of the Administrative Department of Statistics (Dane) showed an annual increase of 13.28%, The transportation line showed that it has leveraged this figure, since services in this sector have risen 12.5% compared to the same period in 2022.
In addition, air transport services have risen 42.8%much more than others. According to industry experts, this is an effect of the increase in the VAT tax on air tickets from 5% to 19% and the rise in fuel.
PAULA GALEANO BALAGUERA
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