JET SET YOU BET
Air connectivity, both domestic and international, is on the rise throughout Colombia and Latin America, particularly in lesser-served regions.
We are looking to develop connectivity through different modes of transport. The policy of this government is to improve all existing transport options, from air connections to roads. Air is the most expensive way to transport cargo or passengers, so it is important to be aware of the subsectors. Perishable goods need to be moved efficiently and quickly. In Colombia, the transport of refrigerated fresh flowers, as well as tropical fruit, is a major area of business. In addition, urgent items delivered through companies such as DHL or UPS are also crucial, particularly for items such as newspapers and magazines and other items for next-day delivery. There is also the luxury category, which requires items to be moved with minimal risk of damage during transit. I believe that Colombia, Barranquilla, and this airport can become the breadbasket for all of the Caribbean islands. That is the way forward, and it is also the reason we need to establish both an agricultural and logistics center here, in order to both produce and, ultimately, deliver.
In 2013, the company managed to grow at a rate of around 12% in the domestic market and 35% in the international market. LAN currently operates from 20 destinations, with 22 routes in Colombia alone. We believe that one of our best achievements has to do with our leadership in terms of on time performance over 2012 and 2013, with domestic flights achieving 88% on time performance rates. Furthermore, we increased capacity by more than 30% on several international flights, such as São Paulo and Miami, thanks to the fact that we started operating Boeing 767 double-aisle aircraft. The most important routes are those that generate the highest volume, such as Cali, Medellín, Cartagena, and Barranquilla. LAN Colombia represents around 5% of LATAM´s overall traffic and should continue to grow for the foreseeable future. Colombia is also the second largest cargo market in South America after Brazil, which spells considerable opportunities for us.
In Colombia, we are doing the same as in the rest of Latin America, and concentrating on underserved markets; in other words those cities where connectivity remains below average. We pioneered international service in Bucaramanga and Cúcuta, providing a convenient one-stop service to the Caribbean, and North, Central, and South America, which nobody else is flying to. We have the shortest connecting times in many of our flights through our Hub de las Americas making it arguably the most efficient hub in Latin America today. Basically, there is no big secret behind our success; it is a case of serving with an efficient and convenient product the underserved cities of the continent. Over the past two and a half years, we have grown by almost 55%. On top of that we are due to receive eight aircraft in 2014, all 737s with the latest Boeing generation sky interiors, and, therefore, expect to grow by around 11%. We should highlight that this is a greatly significant pace when compared with industry growth rates and we feel extremely positive about 2014.
JET SET YOU BET
TABLE OF CONTENTS
Inside Perspective
María Ángela Holguín Cuéllar, Minister of Foreign Affairs, Colombia
TBY talks to HE María Ángela Holguín Cuéllar, Colombia's Minister of Foreign Affairs, on the strengths of international alliances, trade relations with the US, and safeguarding the environment for future generations.
read articleInside Perspective
The Right Honorable Nicholas Clegg, Deputy Prime Minister, United Kingdom of Great Britain & Northern Ireland
The Right Honorable Nicholas Clegg, Deputy Prime Minister of the United Kingdom of Great Britain and Northern Ireland, on progress made in a growing bilateral relationship.
read articleFocus: The Valle del Cauca Department
Cali For Ya
The Valle del Cauca, or Cauca Valley, is the country's gateway to the Pacific, boasting the largest port, at Buenaventura. The region's capital, Cali, is also a heavyweight in terms of GDP, yet lingering problems with violence are holding back development
read articleInterview
Martha Juliana Silva Ricaurte, Founder & President, SILK Banca de Inversión
TBY talks to Martha Juliana Silva Ricaurte, Founder & President of SILK Banca de Inversión, on Bogotá's transportation infrastructure, foreign investment in Colombia, and the private equity industry.
read articleInterview
Rodolfo Ramírez, President and General Manager for Colombia & Ecuador, PPG Industries
TBY talks to Rodolfo Ramírez, President and General Manager for Colombia & Ecuador, PPG Industries, on management strategy, competition, and the legal and regulatory framework in Colombia.
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