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Shake Up In South America

No part of the world is immune from the impact of COVID-19. Aviation in South America is reeling just as aviation elsewhere is, and the scale of the shock to airline operations and networks is comparable.

However, while North America and Europe have seen significant government support for airlines, the same cannot be said of South America. This will be an important factor in how the industry on these continents will emerge from the pandemic. While subsidies provide some stability and continuity to established airlines in mature markets, the lack of subsidy will speed some airline failures.

What it will also do is provide an opportunity for new entrants with business models better suited to the new operating environment.

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