News Story - June 25, 2021

Avianca starts applying low-cost rates in Ecuador

Johan Klok

Air carrier Avianca will apply a new fare structure with low-cost characteristics in Ecuador.

Avianca, which last year entered Chapter 11 of the United States Bankruptcy Law, is one of the airlines getting ready to introduce changes in its business model. A new fare structure is part of these changes. On July 1, it will introduce a new flat rate for passengers that privileges the price over other services. In other words, a low-cost rate for traveling light (only with a carry-on bag, without hold luggage), similar to that used by low-cost airlines.

The airline will have six types of fares. "We are going to have fare bands that will reach specific segments. This will stimulate travel and will enable Avianca to compete better in highly competitive destinations," says David Alemán, Avianca's manager for Central and South America. Because the corporate market has been reduced, Avianca now targets consumers who want to make family or holiday trips.

In July and August, Avianca will increase its frequencies to the Galápagos Islands. Avianca also expects to increase the number of flights between Quito and Guayaquil. Avianca also wants to add new routes. Alemán explains that the airliner is studying point-to-point routes that don't require a connection hub. In Ecuador, Avianca is studying the possibility of returning to Cuenca.

Source: El Universo.