This was reported by El Mercurio newspaper, which added that this would be in Argentina.
Latam Airlines, The largest air transport group in Latin America, would be looking to create a new low-cost airline, amid the boom of flights in that segment, a local newspaper reported Saturday.
Latam has been pressured by the entry into the market of “low cost” firms but had ruled out joining the model, despite applying certain of its rules on domestic flights.
El Mercurio newspaper said that on March 23, Latam entered a letter of intent to create an aviation company before the Directorate General of Civil Aviation (DGAC), without providing details of the content.
When asked about it, the airline told the newspaper that they are always “evaluating alternatives for the development of air transport in the region.”
According to El Mercurio, the firm would explore the same option in Argentina, but it would have as an obstacle the price limitation.
With this, Latam, which is currently going through a strike of the union of crew members of a subsidiary, would enter to compete with the local Sky Airline and Jetsmart, of the American fund Indigo Partners.
The group, with headquarters in Santiago, has operating units in Argentina, Brazil, Chile, Colombia, Ecuador, Paraguay and Peru.