High airport fees discourage demand

According to Chile’s low-cost Sky Airline CEO Horst Paulmann, Argentina’s airport fees conspire against demand, proposing a uniform regional level. Precisely this question leaves him undecided as to whether Sky will be flying out of El Palomar – this will depend on the level of airport fees, says the nephew of Cencosud supermarket chain magnate Horst Paulmann.

Due to Argentina’s recent devaluation, the number of Argentines flying to Chile on shopping trips has dropped off, which makes Paulmann feel that Sky’s current Argentine routes (Buenos Aires, Córdoba, Mendoza and Rosario) are unlikely to grow. Paulmann expects around half a million passengers between Argentina and Chile this year, the same level as last year when traffic had doubled thanks to Sky’s entry into the market.

A flight to Argentina costs the same as one to Europe. Paulmann proposes that journeys

between Argentina and Chile be considered domestic flights since they are similar countries.

Argentina has one of the lowest airport fees in the world at US$3 for domestic flights but one of the highest for international at US$99 while Chile’s range between the two is US$12-30 (the latter figure is also the airport fee for international flights in the European Union). Paulmann further complained about the quality of overpriced Argentine airport services.

Nevertheless, Paulmann said that Sky would be requesting new frequencies in Argentina (for example, Iquazú in season) even if not for immediate use because he is convinced that in the long term prices will fall and air traffic grow.

Source: El Cronista