- February 16, 2021
- Posted by: medium
- Category: National
The airline has plans to use Q400, 76-passenger, and Q200, 37-passenger, turboprop aircraft to launch its flights.
Eduardo DelgadoHe is an American with Ecuadorian roots. Part of his professional career was developed in the aviation market in the United States. Two years ago he began to get involved in the formation of a new airline that operates in Ecuador. From that project was bornEcuador Airlines, an airline that already has the authorization of theCivil Aviation Councilto operate national and international routes.
The businessman was in Guayaquil this week to present the plans of this firm to businessmen in the tourism sector and to Mayor Cynthia Viteri. The firm plans to begin operations next July once the certification process is completed.
Delgado, CEO of Ecuatoriana Airlines, spoke with EL UNIVERSO about the projections that this airline has and the reasons that motivate them to operate in the midst of the worst crisis that the aviation sector is going through. He points out that in the midst of this situation there are opportunities, since 85% of Ecuador's airports do not have services.
With what routes will the operation begin?
“My business was growing and I wanted to scale markets and needed the help of mentors… We wanted to learn how the other markets behaved,” says Zamriver.
They are being planned, they are being analyzed, but in the first stage we would start with Guayaquil, Cuenca, Esmeraldas, Loja, Quito. Then we plan flights to Santa Rosa and Latacunga, where our maintenance base will be. In other phases we contemplate Galapagos, which has not been requested (permission).
What would be the inaugural flight?
We planned something interesting. We are going to launch an inaugural flight from Quito to Guayaquil and at the same time a flight will depart from Guayaquil to Quito, other Quito-Cuenca and Guayaquil-Cuenca flights will land and depart again.
What aircraft will they operate in the country?
Here in Ecuador the plane that is most suitable is theQ400, 76 passengers,and theQ200, 37 passengers, turboprop. Ecuador is small to have operations with a jet, as it is too expensive. We want to lower costs to have affordable rates.
How many aircraft would they operate and how would they acquire them?
“My business was growing and I wanted to scale markets and needed the help of mentors… We wanted to learn how the other markets behaved,” says Zamriver.
We would start with two airplanes and over a period of twelve months we would end up with six airplanes. All planes are leased, the worst mistake is buying a new plane. We are already in the process of negotiating.
The Ecuadorian is used to traveling on large planes. You will start in small planes, how will you change the concept of those who believe that traveling in an Airbus or Boeing is safer?
The Ecuadorian unfortunately got used to traveling by jet, which is very expensive. They are going to pass that cost on to the passenger, that is why there are high rates.
Will they be an airlinelow costor traditional? How will they differentiate themselves to capture the market?
It will be an Ecuadorian flag airline. We are going to make a hybrid between low cost and offering full services. The difference will be in the service. We are not going to charge for certain things. All the services that we are going to have on board will be with people who undertake, with dishes from each region or city.
At the rate level, how would they move?
Our rates will be low. From what we have talked about, certain routes are going to be $50, $65. We are not going to increase the cost of the ticket simply because we are going to have a service on board.
What occupation do you expect to have and what market share do you aspire to?
We should have 75% occupancy in the first year of operation. 85% of Ecuador's airports do not have service, the businessman, the people want to travel. On the domestic side we want to capture 58% in the first year and in the second year have 70% for the services that we are going to have.
The sector entered into crisis and the aviation business demands strong capital. In the case of Ecuatoriana Airlines, where does the capital come from to start this airline flying?
The investment comes from the United States and locally. There are people interested in investing, now we have not accepted a single dollar from anyone. The capital we have used is private. Doors will open for those who would like to be part of this business. In the analysis we have done, it has been identified that there are opportunities in Ecuador.
How many millions do you need to invest to start this operation?
In this first year it is 20 million dollars, that includes the six planes and what is necessary to have an airline.
Have conversations already started with the airports of Quito, Guayaquil and Cuenca?
Yes, we have already started conversations. Now we are on a tour of the cities working with mayors and tourism chambers to let them know that we are going to fly and at the same time negotiating with the airports and what they offer us.
You have a plan to accept members through a founders club, how will that work?
It was created because as people began to talk about Ecuatoriana, many people approached us and showed interest. That's why we created a founders' club, with various levels (of membership), from $250 to $5,000 with benefits to be offered. They do not enter as investors, they only enter as part of a club. There will only be 10,000 founders. Starts March 1st. (YO)