The challenge of LanChile's near-monopoly and the attraction of South America's strongest economy are drawing four foreign carriers to Chile's domestic market.
Leading the group is US cargo carrier Alpine Air Express. Its Chilean subsidiary expects to launch operations in mid-October. Alpine, a dedicated cargo carrier, predicts success in Chile's domestic air cargo market, which is now served only by combination carriers. It will fly three Raytheon Beech 1900C turboprop aircraft out of Santiago on scheduled cargo routes up and down the length of Chile.
Peru's AeroContinente has applied for a licence to re-enter Chile in December with a new subsidiary. Its former affiliate went bankrupt in July after battles with various Chilean agencies. The new venture, also operating Boeing 737s, will go by the name of AeroContinente's domestic subsidiary, Aviandina.
Plans by two Spanish airlines are less clear. Chile's economics minister reports Spanair is interested in buying into start-up Sky Airline - LanChile's only domestic competition. Spanair denies the claim; Sky is more circumspect. Sources claim Spanair is attracted to the local market by the disappearance of Avant Airlines and AeroContinente Chile. Now Sky has replaced Avant, with a former Avant official as one of Sky's owners, and AeroContinente plans a comeback, Spanair's interest is less certain.
Air Nostrum, another Spanish airline, is talking to Línea Aérea de la Patagonia about some sort of alliance to advance international tourism in Patagonia and Antarctica.
Source: Airline Business