Ecuador: TAME EP launched another tender for the sale of three ATRs and three Embraer aircraft

TAME EP put up for sale six aircraft valued at US$15.7 million to pay off several of its debts. The state-owned airline was liquidated in 2020 after incurring losses in the millions.

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This is the company’s second attempt to sell its assets, which will allow it to cover part of its debts for USD 187 million with Petroecuador.

The call for bids began on March 23, 2022, and they expect to close the process on April 11, according to the published schedule.

TAME EP expects to sell three Embraer 190s and three ATR 42-500s in this process, while one Kodiak 100 is being held by the Dirección General de Aviación Civil (DGAC) via a precautionary measure. Another Kodiak 100 could be sold in a previous process.

The Ecuadorian government wants to get rid of these aircraft before they continue to depreciate in value. After almost two years on the ground, their price dropped from USD 18.1 million to USD 15.7 million.

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Details of each aircraft

To see the entire table, place the cell phone in the horizontal position.

Aircraft	Register	Acquisition date	Price	Flying hours	Cycles
Embraer 190	HC-GCF	December 2007	USD 3.880.490	20.718	28.777
Embraer 190	HC-CGG	December 2007	USD 1.860.605	17.306	25.326
Embraer 190	HC-COX	January 2014	USD 252.924	Spare parts	Spare parts
ATR 42-500	HC-CMB	November 2011	USD 3.271.090	13.229	17.038
ATR 42-500	HC-CMH	February 2012	USD 3.223.029	18.323	14.389
ATR 42-500	HC-CLTN	November 2011	USD 3.226.032	13.033	16.724

Five aircraft are in optimal flying condition, while the HC-COX is sold as a source of spare parts for another airline, given that in 2016 it left the Cuenca runway with damage that could not be afforded by TAME EP.

Ecuador’s current aero commercial situation

Progressively existing carriers (Aeroregional, Avianca, and LATAM) have started to cover the demand left by TAME EP.

Avianca Ecuador currently flies to five domestic destinations: Cuenca (CUE), Guayaquil (GYE), Manta (MEC), Quito (UIO), San Cristóbal (SCY) and Baltra (GPS) with Airbus A319 and A320 aircraft. Internationally, it operates to Lima, Peru; New York (JFK), United States; and Bogotá (BOG), Colombia.

LATAM Ecuador is the country’s main airline, with domestic flights to Baltra (GPS), Coca (OCC), Cuenca (CUE), Guayaquil (GYE), Manta (MEC), Quito (UIO) and San Cristóbal (SCY).

Aeroregional flies to Loja (LOH) and Coca (OCC) from Quito (UIO) in Boeing 737-500 and -300 aircraft. Most of its operations are charters contracted by travel agencies and/or private companies.

The start up

The start-up Equair inaugurated its flights in January 2022, taking the slots of the state airline flying to San Cristobal (SCY), Baltra (GPS), Guayaquil (GYE), and Quito (UIO) in Boeing 737-700 aircraft.

Ecuatoriana Airlines, launched in 2021, is still in the process of obtaining its operating certificate and has agreed with ACC Aviation to lease three DHC 8-400s.

Each airline covers Ecuador’s main domestic and international routes. However, there are several destinations that have been abandoned and the companies have not yet declared a possible landing:

• Esmeraldas (ESM), is a port city in northern Ecuador with significant tourist movement. This is the location of the Esmeraldas State Refinery, which depends on Petroecuador. TAME EP operated up to one daily flight with A319/A320 aircraft.
• Lago Agrío (LGQ), serves the city of Nueva Loja, the gateway to the Ecuadorian Amazon region with a tourist offer with special emphasis on ecological activities. TAME EP operated up to 11 weekly flights in Embraer aircraft.
• Santa Rosa (ETR), serves the cities of Santa Rosa and Machala, with a total agglomeration of 350,000 inhabitants, and is an important industrial and agro-export center. TAME EP operated up to 10 weekly flights in Embraer aircraft.