Understanding the Covid-19 recovery – Where does Latin America stand?

FESCH.TV INFORMIERT:

With little direct government support, despite tight travel restrictions, it has been a tough couple of years for the aviation sector across Latin America. By August, most regions of the world will be shifting their focus in managing COVID-19 to an endemic state — how has Latin America managed this transition?

Governments across the Americas need to “fundamentally change their mindset” and the way that they collaborate with the aviation industry; otherwise the recovery will stall, IATA regional VP for the Americas Peter Cerda has said recently.

It is clear that the industry will need much smarter collaboration than ever before.

The fear is that governments across the region will default back to old habits. Over-regulation and damaging tax systems may appear effective tools for recovery, but they are counterproductive for airports, airlines and consumers.

Three of Latin America’s major airline groups – LATAM, Aeromexico and Avianca – are emerging from Chapter 11 bankruptcy protection. As they’ve been working to restructure during the past couple of years their low cost rivals have been preparing to bolster competition with those restructured operators.

What will be the weight of leisure destinations in the post-covid recovery?

What is the status of border reopening and are countries working together to create a seamless experience for intra-regional travel?

While standardised rules for international travellers remains a biggest hurdle for Latin America’s airlines, will new dynamics influence the shape of the industry in the region and bring new opportunities for growth?

Taxation and regulation have long been a complex issue between the region’s aviation sector and the governments. Has the pandemic created opportunities for new dialogue for countries in Latin America to rethink their relationship with the aviation industry?