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Significance
Latin America has a younger aircraft fleet than the world average. Nevertheless, Airbus and Boeing are predicting a requirement for between 2,500 and 3,000 new aircraft to cope with growing demand for air travel in the region over the next 20 years. Reflecting the expansion of low-cost carrier (LCC) operations, the bulk of the new orders will be for single-aisle aircraft.
Impacts
Most growth will come from the region’s expanding budget sector.
New no-frills airlines will force many existing carriers to offer similar options or set up LCC subsidiaries.
Bullish prospects for LCC growth will attract inward investment to domestic airlines.
Keywords:
Latin America,
LA/C,
Argentina,
Brazil,
Chile,
Colombia,
Cuba,
Mexico,
Peru,
economy,
industry,
airlines,
foreign investment,
infrastructure,
policy,
privatisation,
regulation,
transport
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2017
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