'Offer incentives for long-term success'

Offering incentive packages is a better way of securing long-term success with low cost carriers (LCCs) than government subsidies.

Offering incentive packages is a better way of securing long-term success with low cost carriers (LCCs) than government subsidies.

Speaking in a Routes Americas 2018 panel session discussing the sector's future in the region, Corporacion Quiport commercial director Carlos Criado said it was vital that any new airline setting operating out of an airport does so with the long-term in mind.

But he added: "The only thing we have is attractive incentive packages. Those in favour of subsidies are short term."

However, Aerodom Siglo XXI/Vinci Airports chief commercial officer Alvaro Leite argued that government and airport packages are secondary to a LCCs main target.

He said: "Incentives are important but the most important thing is the market. If the market is not there then after a couple of years the airline is leaving."

Siglo also argued that there is room for LCCs to enter a market dominated by legacy carriers as they attract a different market and can even help the traditional airlines.

He added: "The legacy carriers grow as well with the entrance of the LCCs as the whole market grows."


The route development forum for the Americas

The 11th Routes Americas took place in Quito, Ecuador. The event in the Centro de Exposiciones Quito (CEQ) attracted 650 delegates, including 70 airlines, 150 airports and 35 destinations. In 2019 Routes Americas will take place in Quebec City, Canada.

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