Latin American Airline Industry

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Latin American airline industry TAM Airlines is the largest airline in Latin America in terms of number of annual passengers flown.[16]Along the first countries to have regular airlines in Latin America were Colombia with Avianca, Chile with LAN Chile (today LAN Airlines), Dominican Republic with Air Dominicana, Mexico with Mexicana de Aviación, Brazil with Varig, and TACA as a brand of several airlines of Central American countries (Honduras, El Salvador, Costa Rica, Guatemala and Nicaragua). All the previous airlines started regular operations before World War II. The air travel market has evolved rapidly over recent years in Latin America. Some industry estimations over 2000 new aircraft will begin service over the next five…show more content…
Most agreements permit airlines to fly from their home country to designated airports in the other country: some also extend the freedom to provide continuing service to a third country, or to another destination in the other country while carrying passengers from overseas. In the 1990s, "open skies" agreements became more common. These agreements take many of these regulatory powers from state governments and open up international routes to further competition. Open skies agreements have met some criticism, particularly within the European Union, whose airlines would be at a comparative disadvantage with the United States ' because of cabotage restrictions. [edit] Economic considerations Juan Trippe, the founder of Pan American World Airways, surveying his globe. The collapse of Pan Am, an airline often credited for shaping the international airline industry, in December 1991 highlighted the financial complexities faced by major airline companies.Historically, air travel has survived largely through state support, whether in the form of equity or subsidies. The airline industry as a whole has made a cumulative loss during its 120-year history, once the costs include subsidies for aircraft development and airport construction.[18][19] One argument is
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