[Opinion] "El Palomar Yes, Ezeiza No", by Mauricio Sana, Ceo Interim of Flybondi

Desde la perspectiva de una aerolínea Low Cost como Flybondi hay varios criterios claros que pueden ayudarnos a entender ¿por qué El Palomar sí y Ezeiza no? Aclaro que ser Low Cost significa que se busca operar bajo estándares de alta eficiencia y alta utilización, obviamente que hay aeropuertos que se prestan a la eficiencia más que otros (aunque no sean tan lindos).

1- Market

According to ANAC figures, during 2019, 16 million passengers were mobilized in the domestic market, which generate 32 million passengers at airports (shipments at source + landing at destination), 44% (14.2 million) of that trafficconcentrated on the airports of Buenos Aires.

Between 2018 and 2019 passenger traffic in the 3 airports (Ezeiza -Eze-, Aeroparque -Aep-, El Palomar -EPA-) grew by 13% (1.6 million).EPA and AEP take 85% (1.4 million) growth.

This shows a clear conclusion regarding passenger preferences on the use of Buenos Aires airports for cabotage trips.91% of cabotage passengers in Buenos Aires choose Aeroparque and Palomar.Specialists in the Argentine market understand this behavior years ago, so the domestic operation of Aerolineas Argentinas and Latam was scheduled in Aeroparque and domestic flights in Ezeiza are mainly allocated for connections with their international flights.

2- Accessibility

Airport accessibility depending on the service also shows why the passenger might be interested more for services in EPA vs Eze.The maximum train rate of the San Martín train is Ars 33, but if the passenger has up, to arrive from Retiro to El Palomar, he pays a figure of Ars 14 (similar to what a package of mentitas costs, or an umbrella chocolate).This railway line connects El Palomar with 20 different points in the Buenos Aires area.Ezeiza does not have that connectivity.In fact, the most economical option (comparable in time) to arrive is a private service requested by platform whose cost is 6936% above the train rate - for which it is difficult for them to understand the percentages so high the transport service to EzeizaIt is worth 70 times more than the train to El Palomar-.

For passengers who do not use the train service, the transport price is above 35% (this comparison is done using as a microcentro reference point).

As additional fact, according to a survey by Flybondi, 25% of passengers use the train service to arrive.In terms of transport planning, the connectivity and accessibility generated by an airport served by a train line is a pride for many cities in the world.

Stranded a suicide hotline Earlier but they just kept tryin to talk me out of it!Whats up with that huh?I WANED A ... https: // t.CO/WDDDDWSJO1

— Max G Mon May 11 00:34:54 +0000 2020

To expand more about the coverage and prices of the San Martin train service, I leave the link to the website.

3 - Costs

This is where air transport specialists can show off with their arguments and explanations that go far beyond airport rates.I clarif.

In a low cost operation (highly efficient), times and resources are optimized as the only way to maintain competitive prices in our customers- this means that if optimization is not met, prices tend to rise-.A couple of months ago in the middle of an "interesting" conversation, someone close to the industry argued that the distance to Eze was just 5 km additional to Epa to EPA, so they should not substantially change costs -at the same timereferred to the 5 km of difference between the Obelisk and each of the airports, 5 km of first leg, 5 km back-.Does any of you know how much fuel your car consumes to travel 5 km additional -first way, and those back -? And how long do you have to invest to travel those 5km?

In this post I will only address an example to explain the impact on costs suffered by the company in an eventual transfer to Ezeiza and that do not have a solution or an action plan that can eliminate it today.

The filming time (taxi) between the parking area of the plane and the track header on average is 10 minutes in EPA, while in Eze that time it increases to 15 minutes, this is 50% more of filming time.If a Low Cost plane (here I speak with knowledge of cause) 3 round flights makes in one day, the total increased time is 30 minutes (15 hours a month for each plane) impacting:

(i) 15 hours of fuel consumption for each plane, (II) 15 hours more than plane crews, (iii) 15 additional hours of wear parts of the plane increasing the costs and maintenance tasks.

In general, this movement impacts a 5% increase in operation costs.A simpler and more small airport facilitates the optimization of filming times.Sometimes they relate it to secondary airports simply because they are simpler.

To this impact, there are a series of additional inconveniences that translate into costs: handling of suitcases because the distances are higher, delays in congestion operation at peak hours, service management on board, passengers with greater displacements within the interior of theairports, greater endowment of land management personnel, etc..

Flybondi's transfer to an airport like Ezeiza increases the operating costs at least 10%.If we take this to known values in the industry, in an annual operation of USD 2000 million, this suggests USD 200 million cost -Wash USD 550 thousand per day, although we are accustomed to listening to losses between USD 1 million and USD 2millions per day-.

To conclude, companies (public and private) are due to their customers.Flybondi today has a clear objective and is to maintain cost competitiveness to continue stimulating the growth of its market segment, transfer operations to an airport such as Ezeiza attentive against this fundamental objective and puts at risk the price at which passengers can access withThe rates.

It is no accident that the growth of cabotage passengers has mostly concentrated at the El Palomar International Airport, this is because Flybondi's vision is to generate a low cost operation on a simple airport and with an accessibility that no other airport in theArgentina has.

Palomar is an airport that by its characteristics facilitates the democratization of airplane trips throughout the country.

Mauricio Sana works as Flybondi Commercial Office Chief since February 2019.As of May of this year, it is also an interim CEO.He has 15 years of experience in commercial areas of companies in the travel and tourism sector. Previamente fue Director Corporativo de Revenue Management en la cadena Decameron Hotels & Resorts.He was also a Pricing and Revenue manager at Copa Airlines and Commercial Planning Manager and Business Intelligence of Almundo.He is an engineer in systems graduated from the National University of Colombia, an expert in Business Intelligence and Data Management.

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