The brand new Brazilian airline, Itapemirim Transportes Aéreos (additionally recognized solely as ITA), is dreaming large. It’ll launch operations on June 29 and 30, however it already sees effectively past that, into the long run. Itapemirim plans to develop into Brazil’s largest airline and fly to Europe. Is it too nice a dream? Let’s examine additional.
Brief-term large, large plans
Sidnei Piva, Itapemirim’s president, just lately stated some daring predictions for the brand new airline. Inside the following 12 months, he plans to have 50 planes (it at the moment has two) and a route map of 35 locations.
Furthermore, Sidnei Piva intends Itapemirim to achieve as much as 40% of the Brazilian market share, successfully pushing its method by the trifecta of Azul, GOL, and LATAM. Throughout an interview with Brazilian media outlet Exame, Piva stated,
“Coming into the market is like driving in Components 1. Nobody desires to finish final. Everybody desires to win. We’re a brand new group, however we have now at all times desired to be on the rostrum. If a businessman expects to be third general, he’s mediocre.”
He positively expects to have huge development throughout the first twelve months. Ita Transportes Aéreos is aiming to be a point-to-point low-cost airline. On June 30, ITA will formally begin operations from eight Brazilian cities.
On August 1, Ita will add six extra Brazilian locations, rising sometimes till it will get to 35 by June 2022.
To attain these large short-term plans, the airline must obtain its Airbus A320 fleet. At present, it solely has two (of which, just one already has a Brazilian registration, per ch-aviation).
As of April 2021, Azul had a 37.5% home market share, adopted by GOL with 30% and LATAM with 27%. These three airways have well-established fleets and route maps; subsequently, ITA’s activity is just not straightforward, by any stretch of the creativeness.
What about Europe?
ITA Transportes Aéreos is just not solely serious about Brazil; the airline can also be wanting to connect with Europe. Azul solely flies to Portugal and France, whereas LATAM goes to Spain, Portugal, and Germany. GOL doesn’t have long-haul operations in the mean time.
Sidnei Piva stated that the plan is to have ten totally different routes into Europe. Whereas he didn’t make clear which locations it might cowl, he did say that the purpose is to go worldwide in 2023.
Earlier than the COVID-19 pandemic, 16 airways had been flying between Brazil and Europe, providing practically 2,500 month-to-month flights and 745,000 seats, as per Cirium’s database. At present, this market is severely depressed, with 68.3% fewer flights.
Moreover, ITA Transportes Aéreos hasn’t publicly stated which different plane (apart from the A320) might use sooner or later. Any airplane it chooses for its European enterprise would require new pilots and certifications and lift its prices.
ITA actually is low-cost, for now
In keeping with an evaluation printed by Exame Make investments, Ita Transportes Aéreos’ tickets are as much as 65% cheaper than the competitors.
For instance, fares out of Sao Paulo and Rio de Janeiro are 20 to 30% cheaper than GOL’s and LATAM’s.
Whereas these could possibly be introductory fares, it is going to be fascinating to see if ITA maintains them all through its first months. Azul Linhas Aereas began as a low-cost operator however has shifted, and now’s the most costly one in Brazil.
Do you consider ITA Transportes Aéreos can develop into Brazil’s largest airline? Tell us within the feedback.