SUNDAY 9 SEPTEMBER 2018

18:00- 20:00

Welcome Reception at the Intercontinental Cartagena De Indias

MONDAY 10 SEPTEMBER 2018

The Latin America Aviation Outlook: Finding the next 20% yield improvement in Latin America

08:00

Registration, Networking & Coffee

08:30

Coffee Tasting, Colombian Style presented by Café San Alberto

A pre-conference lesson about Colombia's world renowned coffee industry by a local grower. Samples will be given

09:00

Chairman's Welcome

CAPA - Centre for Aviation, Advisor, John Thomas

SESSION 1

09:05

Host Welcome

Ministry of Trade, Industry and Tourism, Vice Minister of Tourism, Juan Pablo Franky

SACSA, Legal Representative, Ramón Pereira Visbal

09:15

CAPA Latin America Aviation Outlook: Finding the next 20% yield improvement in Latin America

There is a lot going right in Latin American aviation. Airport and airspace infrastructure is improving, and airline operating efficiencies are rising. Airport privatisation processes are well underway and the global alliances framework is well established. Open access arrangements are taking hold and regional economies are recovering, driving a buoyant travel demand picture. But Latin American’s full service airlines could be performing better, particularly in the mission to unlock top line revenue improvements. What are the strategies the region’s airlines should be adopting, based on best practice from other regions and other sectors? Can they better leverage data, loyalty, distribution and ancillaries to produce better revenue outcomes and thereby drive improving profitability?

CAPA - Centre for Aviation, Advisor, John Thomas

09:30

Airline Keynote: “Living Together with LCCs - Iberia’s experience in Europe”

Iberia, SVP, Network Planning & Alliances, Neil Chernoff

09:50

Airline investment and foreign ownership in Latin America

Latin American flag carriers have often suffered from the dominance of foreign airlines in key markets. US airlines, notably, have secured significant equity holdings and partnerships, in attempting to subdue some of the more difficult elements of competition. This has been possible as several key Latin American countries, such as Mexico, Brazil, Chile and now Argentina have adopted relatively liberal aviation policies. Ownership and control and foreign equity ownership have been significantly relaxed in several cases. Only a small number of states including those of central America have resisted this trend.As the main Latin economies emerge from the difficult times they have experienced in this decade, there is the potential for foreign airlines to establish even stronger ties.

Moderator: Deutsche Bank, Managing Director, Michael Linenberg

Panel:

10:35

CAPA Membership Presentation

CAPA - Centre for Aviation, Senior Account Manager, Samuel Cui

10:40

Coffee Break & Networking

SESSION 2

11:10

Colombia: Land of Sabrosura

ProColombia, Tourism VP, Julián Guerrero

11:30

The Intra Latin America Outlook

Latin American airlines hold a reasonably positive outlook for 2018 as a crop of new low cost carriers continue full steam ahead in their efforts to stimulate traffic in the region, and larger network airlines balance new competition with their quests to build global network utility and pursue intra alliance JVs.

Steady capacity increases are planned for the domestic markets of Brazil and Colombia as both countries begin to recover from economic downturns but some uncertainty remains in Brazil pending the outcome of the Oct-2018 presidential elections. Increasing liberalisation has also helped catalyse the growth ambitions of LCC start ups. Chile, which allows 100% foreign airline ownership, has seen its airline duopoly disrupted by the arrival of the Indigo Partners controlled ULCC JetSMART, while in the once highly protected Argentina aviation market, one of the more closely watched developments will be the launch of Norwegian Air Argentina in Oct-2018, whose debut will put conclusions that the country is ripe for new low cost competition to the test.

But favourable market and regulatory conditions cannot overcome inadequate infrastructure and archaic air capacity management systems, with many of Latin America’s key markets in urgent need of infrastructure upgrades and air traffic modernisation to support airline growth. And the region is one of the most expensive in the world when it comes to passenger and airline charges - in some cases, taxes and boarding fees represent more than 40% of the final ticket price.

Moderator: ALTA, Executive Director, Luis Felipe de Oliveira

Panel:

12:15

The next big thing:  China and the Asia opportunity

Linking the high-growth economies of Asia with their Latin American counterparts has been alluring for many carriers, but distances and aircraft range limitations have proved barriers to greater connectivity, with many services until recently stopping via hubs in Europe, Africa and the Middle East. But over the last year, capacity between North East Asia-Latin America, particularly between Japan/China and Mexico, has grown at a rapid rate, thanks largely to the advent of fuel efficient aircraft such as the 787 and A350, which has made direct connectivity between the two continents not only possible but also economically viable.On the Latin American side, growth has been driven by Aeromexico, which is the only carrier from that region to serve Asia directly.On the Asian side, Hainan Airlines and ANA offer the only non stop flights to Latin America. China’s Big 3 carriers have also increased connectivity to Latin America in the last year - mainly to satisfy Chinese government objectives of making the country’s airlines more global - with Air China and China Southern currently serving the region via intermediate points.

Moderator: HEICO Aerospace, Business Development Officer, Alex de Gunten

Panel:

12:55

Welcome to Lunch

Travelport, Vice President & General Manager, US Sales, Erika Moore

 

13:00

Lunch Break & Networking

Hosted by Travelport

SESSION 3

14:00

Airline Keynote and Q&A: "The Changing Landscape of Aviation in Latin America and American Airlines"

American Airlines, SVP International & Cargo, Jim Butler

14:30

Panel: What’s set to cause the next wave of disruption on North-South markets? 

US majors have comfortably dominated capacity on routes between North and South America for decades, but new aircraft technology and a raft of new airline entrants are set to change the competitive dynamics of this market. Long range narrowbodies enable US ULCCs and LCCs to compete against the majors by bringing the deep south of Latin America within flying range from South Florida. Latin American LCCs such as Interjet and Volaris are also taking advantage of new technology to to go further into the US, but long haul international markets within Latin America also offer promising growth opportunities.

Moderator: Oliver Wyman, Partner, Scot Hornick

Panel:

15:15

Coffee Break & Networking

SESSION 4

15:45

Keynote:  "NDC - What, Why, How and the Journey to 2020"

Travelport, Vice President & General Manager, US Sales, Erika Moore

16:05

How are Latin American airlines unlocking revenue opportunities?

The expansion of low cost activity in Latin America has prompted the region’s major carriers to adopt new pricing models very similar to the tiered fare structures implemented by their US counterparts. They are engaging in product unbundling of non core services in selected markets, while retaining essential components such as loyalty programs, premium seating and free in flight entertainment in the bundled product. It is a form of price discrimination aimed at segmenting the market according to customers' willingness to pay, thereby maximising the potential revenue. But the success of the strategy hinges on carriers’ willingness or ability to cut non fuel unit costs - for example by lowering distribution and airport costs and increasing aircraft utilisation - and how effective they are in educating passengers on the ancillary model.

Moderator: Oliver Wyman, Partner, Scot Hornick

Panel:

16:45

As NDC becomes a reality, how do airlines avoid the kodak moment?

Legacy distribution systems have for decades presented airlines with the twin problems of high costs and product commoditisation. In efforts to address these issues, a handful of carriers have invested heavily into establishing their own API channels with agents, while the concurrent push by IATA for airlines to implement the NDC standard has encouraged the industry to adopt a retail focused approach to distribution. In this new modernised distribution landscape, itself reflective of wider consumer expectations around seamlessness and personalisation, new opportunities are emerging for other intermediaries and aggregators such as metasearch companies (some of which now have direct booking capabilities), as well as digital behemoths such as Amazon, Google, and Facebook - to gain a slice of the pie. It is clear that airlines, along with others in the supply chain, will need to evolve and invest in technology enhancements to avoid falling behind. GDS channels will also need to evolve their models to remain relevant as fragmentation becomes the new norm.

Moderator: KPMG, Leader Aviation & Tourism LATAM, Eliseo Llamazares

Panel:

17:30

Close of Day 1

19:00

Networking Dinner at Adolfo Mejia Teatro
Hosted by SACSA & ProColombia

TUESDAY 11 SEPTEMBER 2018

08:00

Registration, Networking & Coffee

09:00

Chairman's Welcome

CAPA - Centre for Aviation, Advisor, John Thomas

SESSION 1

09:05

Overview of LCC development in Latin America

The LCC sector undoubtedly is confronted with the greatest global expansion opportunity in Latin America as hundreds of millions of people enter the middle class across the region. Huge new travel markets await. Across the region, second tier cities are emerging that offer great promise to LCCs as flag carriers defend their traditional hubs. But how do the region’s fledgling LCCs stay true to their business model of high efficiency? How can they drive the next step change in unit cost (CASK) reduction? Will it be driven by new aircraft technology, better supplier deals, greater operational flexibility or a combination of these? The LCC sector undoubtedly is confronted with the greatest global expansion opportunity in Latin America as hundreds of millions of people enter the middle class across the region. Huge new travel markets await. Across the region, second tier cities are emerging that offer great promise to LCCs as flag carriers defend their traditional hubs.

Today, LCCs operate the majority of seats in the two largest domestic air travel markets of Brazil and Mexico and have a growing presence in Chile and Colombia. Yet LCCs also face inherent difficulties in achieving meaningful growth in this region, because of factors such as long distances between large O & D markets (where sector time is often in excess of 3.5 hours), relatively thin markets, high charges and taxes, regulatory inhibition and lack of secondary airports.

Given such constraints, how do the region’s fledgling LCCs stay true to their business model of high efficiency? How can they drive the next step change in unit cost (CASK) reduction? Will it be driven by new aircraft technology, better supplier deals, greater operational flexibility or a combination of these?

CAPA - Centre for Aviation, Senior Analyst, Lori Ranson

09:25

Airline Keynote: "Viva Air promoter of the LCC model in the region"

Viva Air, President & CEO, Felix Antelo

09:45

The evolution of LCC business models, vs traditional business model, in Latin America

Latin America’s high internet penetration, historically high fares and a growing middle class provide ideal conditions for the growth of the LCC model, but as with other markets worldwide, low cost carriers in Latin America have taken on a variety of permutations in response to varied operating conditions in each individual market. Just as their full service peers have hybridised and adopted characteristics more commonly found in LCCs, many of Latin America’s LCCs have also taken on traditional full service carrier attributes such as premium seating, alliances and codesharing. For example, Brazilian low cost carriers Azul and GOL openly target the lucrative business passenger market and have always stuck to a hybrid model from their inception, in contrast with ULCCs such as Volaris and JetSMART, who adhere to true low cost principles - although even that is changing now with the former forging a codeshare with Frontier.

Moderator: ICF Aviation, Principal, Carlos Ozores

Panel:

10:30

Coffee Break & Networking

SESSION 2

11:00

Revolution is underway! Who’s driving low cost travel around the region?

Millennials have come of age in an era where digitalisation and the widespread availability of cheaper flights have made travel more attractive and accessible. Inquisitive and constantly connected, millennials are embracing the internet and mobile technologies during their travels and have been at the forefront of driving changes in the way travel is distributed and consumed.We profile the travel preferences of this crucial traveller segment, who are expected to drive much of the demand for LCC seats in Latin America.

Moderator: HEICO Aerospace, Business Development Officer, Alex de Gunten

Panel:

11:45

Greasing the wheels. How do we optimise the selling environment to access the huge growth in the middle classes?

Latin America’s LCCs face challenges in selling seats to potential customers because the region’s airline distribution market is highly fragmented, and traditional third party channels generally only have access to a small portion of a market’s total airline content. Thus far, Latin American LCCs have mostly relied on direct online sales or metasearch companies to distribute their inventory, which helps keep the overall cost per acquisition low while driving ancillary revenue. But what more can be done to bridge the gap between the availability of LCC content and the ability for their target consumers to access it?

Moderator: IATA, Regional Director, Financial & Distribution Services, The Americas, Alicia Lines

Panel:

12:30

Airline Keynote Q&A 

Avianca, CEO, Hernán Rincón

13:00

Lunch Break & Networking

14:00

Overcoming infrastructure constraints: What is needed from the airports?

One significant barrier to higher LCC growth in Latin America is high airport costs, lack of adequate airport infrastructure and the scarcity of secondary airports. Major airports in Argentina, Colombia, Ecuador, Mexico and Peru are overcrowded, a problem that will only worsen in the near term without adequate remedies. By not addressing the urgent infrastructure needs of the region, IATA says Latin America will leave USD42 billion of unrealised economic benefits on the table by 2034, a period during which passenger growth in Latin America is expected to double and the air transport industry’s contribution to regional GDP could jump from USD140 billion to USD322 billion.

Moderator: ICF Aviation, Principal, Carlos Ozores

Panel:

14:45

CEO Roundtable: Latin America LCC leaders divulge the key ingredients for successful and sustainable growth. 

Moderator: HEICO Aerospace, Business Development Officer, Alex de Gunten

Panel: 

15:30

Summit Wrap 

15:35

Closing Coffee Break & Networking