E-NEWS UPDATE VOLUME 19 NUMBER 1102

URIBE: FDI TO REACH $10 BILLION IN COLOMBIA THIS YEAR

The president of Colombia, Alvaro Uribe, believes foreign direct investment (FDI) will be $10 billion in his country in 2009. He also reported that FDI was $6.7 billion in the first nine months of the year, through September. He also stated: "If you ask me what are the key factors for the development of the economy, I will tell you the high investment and access to the markets." He is also confident that the actions taken by his government to liberalize and establish investor confidence has been effective in the development of the economy. He believes that they will sign an FTA with Canada in the next week or so. Way to go Mr. President!

IMF: PERU WILL BE THE ENVY OF THE REGION IN 2010

According to the head of the IMF for the western hemisphere, Nicolas Eyzaguirre,

Peru's economy could wake up the envy of Latin America in 2010 as it grows an estimated 6%. The IMF's estimate of Peru's economic growth is ahead of local analysts who are estimating the economy in 2010 will grow between 4 and 4.5% next year, according to Peru's Minister of Finance, Luis Carranza. Local analysts are forecasting a 1 to 2% growth in the economy this year. But Eyzaguirre - who is quoted in the Peruvian government press release - insists the country is not in a recession and will once again lead Latin America's growth in 2010. He has also met with Peru's president, Alan Garcia, as part of his visit to a number of countries in the region. He stated, as quoted by the Peruvian government: "Peru was better prepared for the global crisis and is well on its way for a major recovery and growth." Optimism is great! Thanks Mr. Eyzaguirre.

THE E-FUEL MANAGER BY LARRY S. WEAVER

About the only good news in the economy last week was that the US government reported that the GDP grew at an annual rate of 3.5 percent - higher than the 3.3 the economists had expected. In addition jobless rates fell. On the petroleum side, oil companies have been announcing significant drops in their earnings due to the continuing high - and higher - crude prices and the somewhat lower refined products pricing putting the refining sector into severe negative ground. Although prices of both crude and products have dropped the last couple of weeks, demand is still down. The OPEC basket of crude prices which they use to track their overall returns, meanwhile climbed to a high of just over $76 per bbl as WTI climbed to $81 per bbl. These increases, however, were not driven by demand but by the weakening US dollar which is used to price crude worldwide. Iran and Venezuela have broken with this and have been requesting euros for their crude and have also asked OPEC to change to euro as the basis for all crude pricing. This proposal may be discussed at their December meeting but it is not expected to be agreed upon...yet.

Barring this unexpected change, as the US takes tentative steps towards recovery from its worst performance in 70 years, the economists are forecasting higher prices. Economists at Auerbach Grayson and at MMC Trading in New York have both forecast prices for crude in the $100 per bbl range within the next 6 to 9 months. They are saying the increasing strength in the equities market and improving economic conditions foretell an increased demand for petroleum. There is a debate whether the current strength in the market is due to speculation or by demand. Whichever it may be, we also see prices climbing in the coming months although we do not believe we will top the $100 per bbl unless the US dollar sinks substantially more.

Other news, briefly

LAN Argentina to grow capacity in 2010

The Argentine affiliate of the "model airline" already has 30% domestic market share in Argentina. It has announced that it plans to increase its presence in the 13 destinations it currently serves by adding frequency in certain key markets. It currently operates a fleet of eight A320s domestically, two A320s on regional routes and two B767s internationally. Stay tuned.

Volaris is basing its new service to the USA on Mexican's VFR

The new service between Morelia and Zacatecas to Los Angeles will begin November 23. According to the airline it is basing its new service on VFR (visiting friends and relatives) demand by Mexican residents in the United States. It is also part of its plan to launch a code sharing agreement with Southwest some time in early 2010. Way to go, Enrique!

TACA to launch nonstop service between Lima and Porto Alegre, Brazil

The airline will begin three-time weekly nonstop service between Lima and Porto Alegre, Brazil on December 3. According to Ian Gillespie, TACA's country manager in Brazil, the airline now serves Sao Paulo and Rio. He did not comment on the new relationship with Avianca - but it is obviously part of the overall plan. Stay tuned.

Mexican LCC Interjet planning to expand service to the United States

The Mexican LCC has announced it is adding four aircraft to its current fleet of 15 in 2010 as it plans to expand its market presence with new service to Texas, California, Chicago and New York. The CEO of Interjet, Miguel Aleman Magnani, announced the airline will close 2009 with a 202% growth and is optimistic about 2010. It's all about optimism. Way to go guys.

Aerogal to launch  Guayaquil-New York nonstop

The Ecuadorean airline, which has been acquired by German Efromovich to play a role in the Avianca/TACA joint venture, is launching B767 nonstop service to New York. It is also talking about adding Guayaquil-Madrid B767 service in the future. The airline is adding A320 and A319 aircraft to its fleet to support its domestic and regional service. One to watch.

Chile domestic air traffic grew 12.4% in September

During the month of September, 416,510 passengers used air travel domestically for a 12.4% growth over the same month last year. Of these, 45,903 were new air travelers - the Southwest Effect. Overall traffic, which includes domestic and international passengers, grew 4.3% to 797,038 passengers during the month, Stay tuned.

British Airways has launched service to Punta Cana

The new, twice-weekly service was launched last week between London and Punta Cana in the Dominican Republic. This is the first Spanish speaking Caribbean destination with nonstop service from London. Europe is discovering Latin America.

JetBlue launches new Jamaica service

JetBlue inaugurated new JFK-Kingston daily nonstops on October 30. Kingston is the airlines second Jamaican destination in addition to JFK-Montego Bay daily nonstops launched previously. Kingston is JetBlue's 14^th international destination.