Latin American airlines embrace equity ties with larger carriers

Leaders of Latin American carriers expressed optimism Monday about the increasingly common joint ventures and airline-airline equity investments, while also downplaying regional challenges as workaday hurdles. "We are carriers in Latin America, and Latin America has ups and downs. And we are used to that," LATAM CE Enrique Cueto said at the ALTA Airline Leaders Forum. Much of the event involved discussion of those ups and downs – primarily the downs, among them political uncertainty, social strife, economic troubles, regulatory barriers and high taxes. Additionally, voters in Argentina just elected the country's next president, Alberto Fernandez, a populist who some business people fear will reverse the recent pro-business shift. Since that shift, Norwegian Air Argentina, Flybondi and JetSmart have started services in the country. "I have a feeling that nothing is going to really change," said LATAM's Cueto of the Argentine election. He suspected the country's government, regardless of who holds power, will decide against handing massive subsidies to state carrier Aerolineas Argentinas. Copa Airlines CE Pedro Heilbron said political changes in Argentina have affected that country's domestic air travel market significantly more than its international one. He downplayed the impact on Copa, which flies to several Argentine destinations from Panama City. Chief executives also say they are adjusting to an environment in which joint ventures and equity investments have become commonplace. Story has detailed background.<br/>