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Latin American airline holding company Grupo Viva is to formally launch its first Viva Airlines business next month. Talking to !"#$%&'(%)& before his keynote speech at Routes Americas 2016 in San Juan, Puerto Rico, ! CEO Joe Mohan said the start-up ! will commence operations in the ! third quarter of 2016 using leased Airbus A320 aircraft, but will not be domiciled in Costa Rica as had been previously suggested.
The launch is the first of three new international airline operations that will be introduced across Latin America by Grupo Viva as part of a five-year development plan and which has
the backing of low-cost carrier (LCC) developer Irelandia Aviation.
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The plan was to establish Viva CAM, a Costa Rica-based business, but market conditions and further analysis has diluted its interest for the time being. Mohan said: “Although the Central American market is the same size as Colombia, where we already have an effective Viva operation, it is split between seven smaller country markets and the current supply of seats has not grown over the past 10 years. “There are also significant tax and airport fee constraints that mean we couldn’t achieve the price points we require to stimulate the market effectively.” The Grupo Viva model aims to bring strong synergies to the three proposed start-up businesses that will enable them to better compete more effectively against legacy rivals than standalone carriers. Mohan added the Viva model meant its airlines would be able to achieve figures of around 200% in terms of lower costs per seats versus established rivals. While remaining tight-lipped on plans, he acknowledged that markets including Cuba, Ecuador and Argentina all appeal.
Nassau’s a double winner
Nassau Paradise Island Promotion Board (NPIPB) was announced as the overall winner of the Routes Americas edition of the Routes 2016 Marketing Awards. The awards, held during the evening networking event in El Cuartel de Ballaja in San Juan, Puerto Rico, were voted exclusively by airlines, and split into four categories comprising three airport categories, split by size and a destination category for the best destination marketing campaign by a tourism authority.
NPIPB was also named as the winner in the Destination Marketing category, while
Aruba Airport Authority was honoured in the under 4 million passengers category; Vancouver International Airport in the ! 4-20 million category; and Las Vegas McCarran International Airport in the ! over 20 million category.
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,&&"-.""' figures soar
Routes Americas 2016 took place in Puerto Rico with nearly double the amount of delegates compared with two years ago.
Speaking on the first day of the event Katie Bland, director, Routes – UBM EMEA, said there had been increase in attendance of more than 80% compared with 2014.
She added the event was being attended by 750 delegates, representing airlines, airports and tourism bodies. “Air services are the lifeblood of the modern economy, it connects people and places,” Bland added. Puerto Rico Tourism Company executive director Ingrid Rivera Rocafort said the event was being hosted on the island as it sees its own tourism resurgence. As many as 9.3 million people are expected to use its airports this year after the figure fell below 8 million in 2010.
She said the growth had been helped by a $750 million programme of improvements undertaken at the San Juan Luis Muñoz Marín International airport by Aerostar Airport Holdings, which began operating the facility ! in 2013.
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Meanwhile, a further 4,000 rooms are currently under development on the island as the government continues to focus on its key tourism industry. She added: “The tourism industry in Puerto Rico is completely out of recession, it will be followed by manufacturing and agriculture but it was the first one that came out. “It wasn’t because of serendipity, it [tourism] works.”
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