Sectoral Study on Competition on the Airline Passenger Transport in Latin America

Aldo Gonzalez, Jun 24, 2013

Sectoral Study on Competition on the Airline Passenger Transport in Latin AmericaAldo Gonzalez (University of Chile)


This sectoral study was commissioned by the Regional Center of Competition for Latin America (CRCAL) and it addresses the main issues related to competition in the airline industry in the region. The report is intended to provide useful concepts and methodological tools to address the most common problems on competition in the airline industry. The practical applications of the principles developed in this report are illustrated by cases that have been examined by antitrust agencies in Latin American countries.

The introductory part of the study provides an overview of the aviation industry in the region. Major air carriers and their respective hubs of operation are identified. Traffic statistics and concentration for both domestic and international routes are also reported.

The document also delves on specific regulations of the aviation market that have an impact on competition in the region. The main constraints on the operation of airlines are the system of freedoms of the air and limits on foreign ownership of airlines. Latin America, unlike other economic areas, such as Europe or the United States, does not have an internal deregulated market. Most countries in the region severely limit the granting of freedoms that would allow foreign airlines to operate in their airports. These restrictions preclude airlines


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