Regional Market South America
Since the opening of the first intercontinental flight from Europe to Rio de Janeiro in 1956, aviation has become an important part of the economy of South America.
Although it has faced many challenges, the aviation industry in South America has been growing constantly during the last years. The numbers of passengers travelling within the continent are increasing rapidly, thus demanding more from airlines. Economic stability and higher income allow an increasing number of South Americans to travel for leisure and business purposes. The necessity for improvements in security measures leads to better decision making by airlines and airport companies, as well as by the highest authority in aviation-the Civil Aviation Authority.
The demand derived from international events, such as the World Soccer Championship 2014 and the Olympic Games 2016, speed up growth and create the necessity for detailed planning and appropriate solution finding. Lufthansa Consulting supports the effective, fast and transparent development of such projects.
FITCuba is the most important event of Cuba’s tourism industry. Its main objective is the promotion and strengthening of Cuba’s attributes as a tourist destination for a wide range of visitors such as airlines, travel agencies, hotel and transportation companies as well as communications media and industry-related service providers.
Cuba is trending as a holiday destination. That is why the event is a chance especially for foreign delegates to weigh out investment and participation opportunities. A further aspect is the communication of Cuba’s cultural values as well as an illustration of a guest country. In 2017, Germany will be the official guest exhibitor as German tourists mean one of the best paying target groups for Cuba. The event for travel professionals and the general public will be hosted by the Cuban Ministry of Transportation and includes panel discussions and exhibitions.
Meet Liege Emmerz, Partner and Head of Market South America, at the fair.
On the occasion of an aviation industry event for the Central America and Caribbean region the German management consulting firm Lufthansa Consulting examined the growth perspectives for Panama’s aviation business with a particular view on air cargo and the status of the country’s logistics industry.
Panama is developing as a hub for aviation services in the region. There are new opportunities, advantages and maintenance needs for aviation services in Panama for operators, OEM, MRO, training organizations and aviation related services.
The air freight market growth rates are expected to be above the world average. In the World Bank’s Logistics Performance Index 2016 Panama ranks 40th, becoming a leading nation in the region. Its unique geographical position calls for linking traffic flows to unlock growth potential and drive prosperity. The country has a unique location at the isthmus between the Americas. Due to this situation, it has already become a focal point of ocean shipping between Europe, Asia and North America and South America. Air cargo may also benefit from Panama’s unique location developing into a gateway to Latin America as well as to the Caribbean.
Lufthansa Consulting’s experts forecast some promising opportunities for Panama not only for the Air Cargo market but especially for its integration in the country’s logistic hub. They examined the key questions to be scrutinized in this context. How can Panama exploit the logistics potential? Does it work in a modern supply chain environment and if so, what conditions must be observed?
Looking into the development of supply chains delivers the answers. Cargo City concepts can be a proper professional and efficient way as a model with coordinated multimodal freight hubs that exploit the connectivity and benefit from value chain concentration of activities in one place. Cargo Cities’ creation of coordinated and streamlined processes that enhance bottom line value maximizes returns on investment. Modern supply chains are essential for a logistic hub as an intelligent solution for linking all possible modes of transport in Panama. Developing them from the traditional multi-modal transport chain to an advanced synchro-modal supply chain, KPI-driven and under logistics providers’ control forms the key aim to attain.
Air Cargo Cities generate both macro and micro economic value and form an opportunity for Panama. In order to achieve the forecasted opportunities for sustainable success the country needs intermodal solutions to generate additional traffic by integrating air, rail, road and sea transportation based on competitive integration strategies and optimal planning. Further requirements are the design of the necessary infrastructure and developing intelligence supply chain solutions to meet the increasing capacity demands in Panama’s logistics industry, now and in the future.
Embedded into this year’s “Brazil Air Show”, the International Air Transport Association hosts the “Wings of Change” conference at the International Airport in Rio de Janeiro. It is the first time that the event takes place in Brazil to bring together the leaders of the aviation sector in Latin America.
More than 700 delegates will discuss the latest developments concerning the challenges for air integration and economic development in South America. They will participate in workshops dealing with recent topics, which are influencing the industry. It is a great opportunity to catch up with the latest trends and issues of the South American market.
Meet Liége Emmerz, Partner and Market Leader of South America, at the conference.
Digital transformation is of rising importance for the aviation industry. To keep up with increasing passenger demands, airlines and airports urgently need to expand their customer offerings with regard to digital services. Consequently, it is one of the main topics at this year’s Passenger Terminal Expo & Conference in Amsterdam from 14 -16 March, dealing with the most recent issues and innovations of the aviation business. Senior Consultant Georg Baust will represent Lufthansa Consulting at this event and will give a speech entitled “Don’t adapt, innovate – increase customer experience with digital transformation”.
In order to stay competitive it is key for airlines and airports to adjust to technological developments. As the customer journey and experience should always be the main focus of a successful business, an orientation towards customer needs and habits is essential. Nowadays, those needs are mostly influenced by the use of digital media. The task for airlines and airports is to create possibilities and solutions to embrace the potential of digitalization.
For instance, Lufthansa Consulting supported and accompanied the implementation of wireless internet connection to passenger-owned devices and inflight internet connectivity on long-haul as well as short-/medium haul flights for a major European airline client. The advantages of digital connectivity have significantly improved customer experience and enhance a sustainable revenue perspective. The successful interaction with customers provides customer loyalty with higher lifetime value. After all, only customer loyalty can assure long term profitability.
It has become widely accepted and outlined in extensive literature that air transport is a major global driver of economic growth and social progress, which affects broad economic sectors. Investments in air transport infrastructures have proved to provide tangible and quantifiable economic returns. This also applies to Latin America, where according to IATA, the air transport sector contributes an estimated US$ 167bn per year to the region’s GDP and supports 5.2m jobs.
For Argentina, air transport is estimated by IATA to have an impact of US$ 9.6bn on GDP and an impact on c. 300,000 jobs. The country’s geography, developing economy and existing transport infrastructures shape a solid business case for air transport development. Argentina enjoys steady market growth with limited domestic dependency and strong prospects in the North American market. North American and European markets count for 22% of total O&Ds to and from Argentina.
“The development of air connectivity and corresponding investments in air transport infrastructure is the economic value creator for Argentina,” stated Lufthansa Consulting’s Partner and Head of South American Market, Liége Emmerz, at the 13th National Congress of Infrastructure in Cartagena, Colombia. “For the future, intermodal travel makes a strong case.”
The main gateway is Buenos Aires, although the country could further improve its international exposure and tourism dynamism with increased international flight intensity. Benchmarks show there is room for further investments in air transport infrastructure in Argentina.
Lufthansa Consulting’s experts have vast experience in infrastructure assessments and planning.
We look forward discussing your business development.
Improved safety levels through standardized procedures and implementation of higher operations standards. Staff training and audits ensure conformity with higher standards and continued improvements.
To secure the future viability and growth of the airline, Lufthansa Consulting optimized the route network and identified new potential markets. Recommendations for short and long term fleet planning were defined to support the network optimization.
The efficiency of the existing cargo terminal facilities was improved to handle the future cargo demand until at least 2018. The client is the number one freight airport in Brazil with a terminal area of 96,000sqm handling 439,000t of cargo per year.