The competitive environment in airlines in Peru is becoming stronger. The development of low-cost alternatives, which not only compete with scheduled airlines but also with other means of transport, was clear in the review period.
For a long time, Lima was the only real point of entry to the country, as well as the main pivot for domestic flights. Although there were some other international airports, the infrastructure was underdeveloped, and there were therefore few direct international flights other than via Lima.
In an attempt to face the price war started by the low-cost segment, LATAM Airlines Group decided to implement a mixed strategy, offering low-cost rates that sometimes equate to those of airlines such as Sky Airline Perú. However, this has gone hand in hand with consumers’ perception of a loss in service quality.
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Discover the latest market trends and uncover sources of future market growth for the Airlines industry in Peru with research from Euromonitor's team of in-country analysts.
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