The recovery of LATAM’s operations in Colombia has been the most outstanding for the airline in South America, which is why the company aims for sustainable growth in the country.
Aviacionline spoke with Santiago Álvarez, CEO of LATAM Colombia, to learn more about the subsidiary’s current affairs and its plans for the future.
Aviacionline: How is the company’s restructuring plan progressing?
Álvarez: As is public knowledge, we are working on the reorganization plan that we must present to the United States bankruptcy court on September 15. The structure of the group has been thoroughly revised, simplifying significantly the way it operates. Today we are efficient, more agile and we are much more prepared for the current contingency scenario. We are optimistic and hope that the pandemic will ease and that operations will resume at a faster pace in the coming months.
Once we have finalized the plan, we will undoubtedly be a better group after leaving the pandemic and Chapter 11 behind, and with the support of all of our stakeholders, we will be in better shape to face the return of post-pandemic demand.
AOL: Speaking specifically of Colombia, what plans does the airline have for the second half of the year in terms of routes and operation?
SA: – At the beginning of the semester, we announced LATAM’s growth plan in Colombia, with a strong investment in maintenance, fleet provisioning, and the incorporation of three new aircraft to strengthen our commercial offer of domestic routes.
In addition to the inauguration of the Bogotá – Armenia route, we focused on decentralizing the operation from the capital in order to offer our passengers more convenient and direct alternatives. For this reason, we inaugurated the Medellín – Cúcuta route and soon, we will connect the capital of Antioquia with Bucaramanga. In addition, we increased the frequency of 7 routes that connect Medellín with cities such as Cali, Santa Marta, and Cartagena.
Regarding international routes, between June and July we reactivated the Bogotá – Miami and Bogotá – São Paulo route and in the coming months, Bogotá – Guayaquil will begin connecting Ecuador with Colombia. Towards the end of the year, we hope to operate Bogotá – Yopal and Bogotá – Riohacha, and connect internationally Lima with Cartagena, Cali, and Medellín.
This allows us to be more competitive in the face of the clear growth opportunities that are being presented in the Colombian air market. Currently, we project we’ll reach 76% of our operation versus July 2019, with 98% of the domestic operation active and 50% of the international.
AOL: With the arrival of new competitors in Colombia, how will LATAM face competition and what differential does it offer travelers?
SA: – In LATAM we have financial strength even in the midst of the crisis, the support of the LATAM Group, the largest operator in Latin America, and especially with a business model that allows us to be more competitive to take advantage of the current market opportunities.
But beyond that, we have a comprehensive value proposition that, in addition to offering a quality service, incorporates social and environmental elements with an economic impact that seek to build a company capable of adding value to society, a company with which the country can count.
In Colombia, the need for a private sector that sees society as the true beneficiary of its business activity is clear. For this reason, our proposal has the components of security, reflected in the biosafety standards and processes that generate confidence in the passenger; service, with the consolidation of a digital experience, the strengthening of the network and alliances at different levels that benefit the passenger experience; and sustainability, with long-term goals that help protect the environment and the most vulnerable communities in Latin America.
AOL – What is the airline’s new sustainability plan? And how will it be applied in Colombia?
SA: – «A necessary destination» is the roadmap that LATAM Airlines has defined for our operation in each of the countries where we have a presence, through which we assume challenging commitments, putting sustainability at the center of our business strategy for the next 30 years. It is based on four pillars: environmental management, climate change, circular economy, and shared value.
In this way, the LATAM Group is committed to:
● Be carbon neutral by 2050, reducing our carbon emissions through the implementation of efficiencies in our processes. At the same time, we will offset our emissions in projects that generate environmental, social and economic benefits, and we will promote the development of a sustainable alternative fuels program.
● Reach 2022 with 100% of our operations with the reference environmental certification in aviation (IenvA), granted by the International Air Transport Association (IATA).
● Promote a culture of reduction, reuse, and recycling throughout our operation so that, by 2030, we do not have to send waste to landfills. The above, starting with the elimination of single-use plastics before 2023.
● And finally, through our «Avión Solidario» (Solidarity Plane) program, we will continue to make our network and connectivity available, supporting health needs in the region, promoting care for the environment, and helping in the event of natural disasters.
National routes inaugurated or resumed by LATAM Colombia in 2021:
Bogotá (BOG) to Valledupar (VUP), reopened on January 1, route suspended due to the pandemic.
Medellín / José María Córdova (MDE) to San Andrés (ADZ), reopened on January 1, route suspended due to the pandemic.
Medellín / José María Córdova (MDE) to Santiago de Cali (CLO), inaugurated on January 1. The company was able to operate it between November 2015 and June 2016.
Santiago de Cali (CLO) to Santa Marta (SMR), inaugurated on January 18, a new route for LATAM.
Santiago de Cali (CLO) to Barranquilla (BAQ), inaugurated on January 25, a new route for LATAM.
Medellín / José María Córdova (MDE) to Montería (MTR), inaugurated on January 25, a new route for LATAM.
Bogotá (BOG) to Pasto (PSO), inaugurated on February 1. It is a new route for LATAM, although AIRES operated it in 2009 with a triangular link with Popayán.
Bogotá (BOG) to Armenia (AXM), inaugurated on June 16. It was a route acquired by AIRES and it was operated until October 2012.
Medellín / José María Córdova (MDE) to Cúcuta (CUC), inaugurated on July 1, a new route for LATAM.
Medellín / José María Córdova (MDE) to Bucaramanga (BGA), inaugurated on August 1, a new route for LATAM.
Bogotá (BOG) to Riohacha (RCH), route requested to Aerocivil, awaiting approval.
International routes inaugurated in 2021:
Bogotá (BOG) to Miami (MIA), operated until September 2019, but in November 2020 it resumed due to high demand. Then in July, LATAM reaffirmed his commitment to Miami for vaccine tourism in the United States.
Bogotá (BOG) to Guayaquil (GYE), will be inaugurated in November 2021.
Bogotá (BOG) to Quito (UIO), route requested to AeroCivil.
Miami (MIA) to Barranquilla (BAQ), route requested to Aerocivil.
LATAM’s Colombian-based passenger service fleet consists of thirteen Airbus A320ceo and eight Airbus A319.
