Page 22 - ASUTIL 2023

INSIDER

Ecuador reduces fees to promote aviation connectivity to the country and region
The country is expanding its international routes and frequencies by implementing economic decrees
and hosting influential airline events

The Ministry of Tourism of Ecuador Aviation Day Ecuador 2023 ALTA Aviation Law Americas
announced that it has reduced its Eco Delta IATA (The International Air Transport Conference
(ED) and Tourist Power (PT) rates in order Association) will host the “Aviation Day ALTA (The Latin American and
to strengthen the competitiveness of the Ecuador 2023” event set to take place Caribbean Air Transport Association) is a
country’s air connectivity. This decree will June 21, 2023, in Guayaquil. Guayaquil is private, non-profit organization made up
reduce the costs of air tickets to boost the the second largest city in Ecuador and the of over 150 member companies that make
reactivation of air connectivity and the nation’s economic capital and an important up more than 80% of passenger traffic
arrival of new air service providers in the coastal port. in the continent. ALTA’s efforts aim to
country. The event will serve as an opportunity facilitate the development of safer, more
This new rule signals the second phase for worldwide industry experts, senior efficient, and environmentally friendly air
planned for the reduction of tourism taxes. executives, tourism, and government transportation in Latin America and the
In the first phase, the Ministry established authorities of the airline industry, to come Caribbean.
a rule to lower the contributions in all together and discuss the challenges and The association hosts six conferences
airports administered by the General opportunities facing the aviation sector. annually. This year one of their major
Directorate of Civil Aviation (DGAC). The Their agenda will also include discussions conferences, the ALTA Aviation Laws
application of this second phase reduction about the role of the aviation industry in the Americas Conference, will be held in
will be effective as of June 1, 2023. socio-economic recovery of Ecuador and Ecuador’s capital city of Quito from
Alongside these new decrees, Ecuador the region after the pandemic paralyzed the September 20-22. This conference serves
will also host a series of events this year industry in the region. as a crucial platform for airlines and law
for the airline industry to welcome and firms collaborating with operators to come
promote their businesses in the country. together and discuss the legal divisions of
the parties. The conference’s agenda will
focus on exchanging views, ideas and best
Santiago duty free tender under way practices on legal, financial, and political
issues affecting the aviation industry in
After almost four years of delays, years and market penetration (number of Latin America and the Caribbean. The
Chile’s Ministry of Defense and the sales tickets divided by total international event will also host tourism agencies and
Finance Ministry published details of the passengers). the media to bring visibility to the tourism
long-awaited tender for the duty free shops These technical factors will account business in the region.
at Arturo Merino Benitez International for 20% of the total evaluation.
Airport (SCL) at the end of April. The remaining 80% of the evaluation
Located in Pudahuel just over 20 kms will be given to the economic offer. The new concession contract is for a period of
from the center of Santiago, the airport is tender documents point out that the offer 12 years with a possible extension of three
Chile’s biggest international gateway. must be for a minimum of $2m per month years.
Although SCL has been managed by and a minimum of 8% of total sales. Duty free stores at Santiago have been
the Nuevo Pudahuel consortium (Groupe Potential bidders were invited to visit managed by Aldeasa Chile / Dufry since
ADP (45%), VINCI Airports (40%) and the airport from the end of April until the 1994. As one of Latin America’s biggest
Astaldi Concessioni (15%)) since April end of May. Doubts and questions from concessions, Dufry will want to hold on to
2015, the duty free concession is still interested operators had to be submitted this concession. However, for the first time
controlled by the Chilean government. within 49 days from publication of the they will experience fierce competition.
The tender evaluation committee is tender details and these will be answered Lagardère, which already operates food
presided by the Ministry of Defense and within 70 days from the tender publication. & beverage concessions at the airport and
is composed by civil servants from the Full offers must be submitted by day 90 took over the duty free operation at Lima in
Defense Ministry, the Finance Ministry, of the tender process. The evaluation Peru in January 2021, has made no secret
the Chilean Civil Aviation Authority and committee will meet, and study proposals of its interest in competing in the tender.
Chilean Customs. and announce a winner within 30 days of
The committee will look at a number the submission of offers. Total sales in SCL duty free reported by
of technical aspects including total sales, It is still not clear how many duty Aldeasa Chile
years of experience as a duty free shop free operators have visited the airport 2012 - $80.3m 2018 - $81.8m
operator, number and size of duty free nor how many have submitted questions 2013 - $78.6m 2019 - $69.9m
concessions currently being managed. to the evaluation committee. However, 2014 - $76.8m 2020 - $18.1m
Interested parties will also be asked to independent observers expect that the 2015 - $74.5m 2021 - $18.1m
present sales indicators from their current award will be announced in the second 2016 - $77.4m 2022 - $31.6m
concession contracts including sales per half of the year and the winner should start 2017 - $90.9m (sales Jan-Nov)
sqm, average sales over the last three operations at the beginning of 2024. The JG

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