Paulmann says that in Argentina there are still no conditions for the "low cost" and discards entering the cabotage business



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The Chilean businessman, CEO of Sky Airlines, said he questioned the minimum rates, high boarding fees and restrictions to offer ramp service.


SKY Airlines is still far from consolidating its position in Argentina if the country's current air regulations are maintained. This is clear from the statements made by the CEO of the Chilean company, Holger Paulmann, to a trans-Andean environment.

The Chilean businessman questioned the minimum rates, the high rates of embarkation and also the restrictions to offer service of ramps.

"The aircraft revolution is on the right track, but the market has not yet been released enough to really allow the low-cost model to be sustainable "Paulmann told Ambito.

"It would be necessary to completely eliminate the minimum rate, because it is now limited to the sale of tickets more than 30 days in advance and the truth is that 80% of the tickets are sold in the last 30 days in what is the short term market," he added. .

Along these lines, he argued that, in the current scenario, only the price for the 20% of the ticket offer can be reduced.

"And we should bear in mind that the main differential of low-cost supply is price, but if the regulation does not allow you to sell below the price of operators that have full service, then it is very difficult to compete with this scenario," he said. .

In an interview with Ambito, the businessman specified that boarding fees on international flights do not affect long-haul flights, but "the impact on short-haul flights is" very strong. "

In this context, it was ruled out that at the moment the company is launched in the cabotage business.

"We believe that for this they still have to change all market conditions. We have always said that, although the conditions in Argentina are not correct, we can not enter the domestic market, "he said.

Paulmann also said that the devaluation changed the composition of passengers on Sky.

"If before the devaluation 75% were Argentine passengers, now the Argentines are only 25% and the others are Chilean," he said.

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