Spotlight on Latin America: Primed for Growth and Heavy Competition
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Industry experts expect Latin America to maintain steady growth in the coming decades, with low-cost carriers readying for heavy competition. The planned Mexico City airport, designed by renowned Foster + Partners architecture firm in conjunction with Fernando Romero Enterprise and Netherlands Airport Consultants, is a prime example. This future airport city will be almost six million square feet, making it one of the biggest airports in the world. It is characterized by a revolutionary ecologically sustainable design which utilizes solar energy, captures rainwater, and enables cross ventilation to naturally cool the air.
IATA predicts that Latin American markets will grow by 4.7%, over the next 20 years, serving 605 million passengers by 2034.
Airbus and Boeing both forecast strong demand for aircraft in the region.
“The long-term prospects for the Latin American economies remain positive, providing they can address structural issues that could impact growth sustainability, among them inadequate infrastructure.” €”Airbus Global Market Forecast 2014.
CAPA reports that Latin America accounts for 14% of the world’s airport projects, including some – such as the Mexico City Airport – attracting worldwide attention.
While participation in the market by both established Latin American and international carriers will continue, low-cost carriers are gaining ground with new competitors emerging in the market to capitalize on projected growth.
VivaAerobus and the Colombian airline VivaColombia will expand the Viva airline brand in Central and South America. Grupo Viva, a multinational airline holding company to be based in Panama City, Panama, will be responsible for development of the Viva airline brand beyond Mexico and Colombia. Irelandia Aviation managing partner Declan Ryan is a principal investor.
“We are convinced that there are tremendous opportunities for our ultra-low-cost airline model to expand in the region.”€”Declan Ryan