MercoPress. South Atlantic News Agency

Argentina has average cheaper domestic and regional air rates

Argentine flag airline Aerolinias Argentinas

Argentina has the lowest domestic air rates in Latinamerica and the Caribbean according to the latest report from American Express Business Travel Monitor released this week. Argentina's air rates are also among the cheapest in the “inter-regional” and international flights to United States and Europe says the report which monitored rates during the first six months of this year.

Domestic flights in Argentina average 0.40 US cents per mile compared to the 1.20 US dollars average in Latinamerica and the Caribbean. Similarly with regional flights that cost an average 48 US cents per mile against the 72 US cents in the rest of the region. Regarding international flights the average for Argentina is 37 US cents with the average in the region 54 US cents. This applies to flights to the US and Canada, with the exception of Ecuador, Colombia and Chile. However AEBT forecasts for 2008 hikes in Argentine air rates, ranging 4 to 7% domestically and 6 to 8% internationally. But in the rest of the continent, the average increase for domestic flights is estimated in 1 to 2%, and 4 to 7% for international flights. These factors are closely linked to the performance of the different economies, with Latinamerica showing a sustained robust growth, 8% for Argentina compared to the world's 4%. Norberto Gunsberg from AETravel said that air rates have been increasing because of the strong economies in the region and the rise in the price of fuel. BTM monitors air rates in the three travel categories, First, Business, Tourist from 351 cities in eleven countries in Latinamerica and the Caribbean (Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, Panama, Peru, Puerto Rico and Venezuela, to all possible world destinations. The BTM report also addresses the so called "Publisher and effectively paid rates", the first being official listed and the second include rebates, promotions, corporate refunds, seats availability. Comparing first six months of 2006 with six months 2007, air rates in Argentina increased 2 and 12% in the domestic market, following on rises authorized by the Kirchner administration to help recover rates frozen since the 2002 crisis. However the inter-regional, (Latinamerica and the Caribbean) actually dropped 13% because of increased competition from Copa, (low budget) Gol, Taca and Lan. But international rates to the US and Canada increased 9% and only 1% to Europe. As to air rates effectively paid (with rebates and other perks) overall they climbed 6% with domestic rates leading 26%, while inter-regional dropped 19% and 2% those to the US and Canada. Transoceanic air rate jumped 12%.