LATAM Airlines announced plans to start a low cost carrier (LCC) in Chile with possible expansion to Argentina. The preliminary application is already in the hands of the Dirección General de Aeronáutica Civil (DGAC), the Chilean civil aviation authority, according to local paper El Mercurio.
LATAM, the company born of the fusion of Chilean LAN Airlines and Brazilian TAM Linhas Aéreas, is facing an increased competition in Chile with low cost airlines such as Sky Airline and JetSmart conquering shares of the domestic flights. In order not to miss the window of the low cost market which is booming in South America, LATAM is looking into creating a new airline to operate short and medium-haul flights across the continent.
The company is looking into settling this new brand in Chile to begin with. It could be exploring an expansion in Argentina. However, that development could be compromised by local laws setting a minimum price on plane tickets.
Source – AeroTime