Catalogue of issues force Aerolineas Sydney axe

Catalogue of issues force Aerolineas Sydney axe
By admin


Aerolineas Argentinas has admitted it didn’t have the product to compete in the market as it prepares to bring almost three decades of flying to Australasia to an end.

The airline yesterday confirmed it will axe the loss-making Buenos Aires to Sydney route from April as it switches focus to the US and Europe.

Sales manager Sergio Gomez told Travel Today that while loads were high – close to 90% in September – the route was plagued by a catalogue of issues, including the continuing deployment of A340-200 aircraft that are more than 20 years old.

Product had not been upgraded, fares were too low-yielding and the operation was hampered by weather-related weight restrictions which meant it could not sell 20% of seats.

Gomez thanked the trade for its support but acknowledged it was a route that has persistently struggled.

“This is the 27th year we have been operating here but that doesn’t mean it has been a profitable route for those 27 years,” he said. “There have been ups and downs, although 2009 was the worst period.

“The numbers just don’t add up to continue the service.”

While the state-owned carrier has invested in a fleet renewal program, joined Skyteam and generally sought to reverse its flagging fortunes, the Sydney route has remained problematic, he said.

The onboard A340-200 product – more than 20 years old – couldn’t match that of competitors with Aerolineas offering economy fares up to $500 cheaper than rivals while business class fares were between 40% and 60% less.

“The fares matched the product,” Gomez said. “In business class the seats just had a massive recline. Even low cost carriers like AirAsia X have lie flat beds.

“We were also weight restricted because of the weather and had 20% less seats to sell which was a huge disadvantage verses our competitors.

“It has been a very tricky route to operate.”

Gomez added that the Argentine Government puts a lot of emphasis on operating to long haul markets where there is a sizeable expat population. That is not the case in Australia where the Argentine community is small, he said.

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