Aircraft with foreign registration will be able to fly domestically in Ecuador

With resolutionón No. 018/2017, the National Aviation Councilón Civil agreementó update and issue the operating permit regulationsón for performanceón of transport services toécommercial prisoner, where among others, It is mainly highlighted that airplanes with matríforeigner mayán wants theméstatic in Ecuador without restrictionón.

With date 11 from December to 2017, if I say the resolution is approvedón what to allowá that the aerosolíEcuadorian airlines can operate on regular flights SundayéStylish airplanes with matríforeign ass, without already having the obligation to operate with the matríEcuadorian cell assigned to the paíI know what it is HC-.

This measure can be taken as part of the Government's plan to improve connectivity toéarea with the measurements of the fuel subsidyéreo JET A1 and the políOpen Skies ethics.

resolveón 018/2017

as we comment, the resolutionón has some measures and updates for granting permissions, but today we will talk úonly to the extent that will allowá to the airíEcuadorian airlines operate aircraft with matríforeign ass:

The Addressón General of Aviationón Civil authorizeá to the friendsñíEcuadorians who are operating transportation services toéreo commercial doméstic and international, I use itónumber of parent aircraftíforeign ass, as long as:

1. Compliance with the requirements established in artíass 60 of the Aviation Lawón Civil and demás applicable regulations.
2. East én listed in the operator's operational specifications.
3. The internal and external connectivity of the country is promotedís.

(…)

La operationón with aircraft leased for domestic transportéstic úcan onlyá carried out under the Dry Lease modality*.

(…)

In a manner compatible with the needs of industry and práinternational ethics, the líneas aéEcuadorian areas will haveán the flexibility to use aircraft in different leasing modalities, contractual figures that are recognized in the aero communityáutica international (dry lease, wet lease, interchange or hourly rental).

(…)

If you includeá routes and frequencies that promote connectivity within the Ecuadorian territory, provided that the economic performanceóaverage of the commercial routes operated reflect a profitability higher than the national average. These routes and frequencies mustán be operated within a period of 3 months, counted from the notificationón of the resolutionón.

(…)

This regulation enterá in force from its issuanceón (11 from December to 2017) without prejudice to its publicationón in the Official Registry.

*It should be noted that Dry Lease means that the lease is úonly from the planeón, unmannedóNo passenger or pilot cabin.

Prior to this resolutionón and with the aim of promoting healthy competition between airlinesíairlines operating domestic flights in Ecuador, is the operating permitsón were granted úonly for operationón of airplanes duly registered with matríecuadorian ass.

Now, not existá más this restrictionón and allowá to the current ones 3 aerolíEcuadorian airlines operate with foreign aircraft with matríass of others países, as has already occurred on some occasions due to their necessity, but with a deadlineáright to operate in Ecuador with another companyíbutt, from 90 días since the authorizationón.

The debate

Having consulted with several people from the airlineáutico local, who have requested to keep their names withheld, have identified that this resolutionócan'tá have some advantages and disadvantages for the Ecuadorian airline market. We list them belowón:

Possible advantages:

• Benefit internal connectivity.
• Aerolíneas podrán incorporate aircraft with matríbutts of othersíses and get them flying in Ecuador in less time.
• Lower trámites to incorporate new aircraft into fleets.
• Rotationón of aircraft with other airline fleetsípartners or holding companies.
• Reductionón costs for airlinesídenies.
• Possible reductionón of maintenance times.
• Better fleet availability.
• Have alternatives in case of AOG aircraft (unscheduled maintenance).
• Reduction potentialón of rates toéreas when the trio were releasedámites and allow rotationón international.

Possible disadvantages:

• Potentially aerosolítransnational lines operateán úonly with airlinersíforeign ass.
• Aero personnel reductionáutico like flight dispatchers, mecánicos, pilots, etc.
• Ecuador will be ableíto become úonly one point of passage for airplanes.
• not existífixed base aircraft.
• Aerolílocal lines without the support of a large group will beístill at a disadvantage.
• When trading with matríforeign countries all tariff issues, maintenance and other aspects, to beán benefits úonly from the paímatríbutt.

¿Cóhow it operates in other countriesíses?

It is worth noting that other países of the regionón already told a few years agoñThis modality or operating permitsón.

BáBasically the idea is that an aerosolícompany that has subsidiaries in several countriesíses, You can rotate your aircraft between those países. An idea of ​​this operationóIt's not that an avión arrives from Lima with matríforeign plane and that same planeócan'tá fly to Manta without anyúno problem, make the round trip flight to Lima or other national destinations in Ecuador until the airlineíne need it.

The best examples are Colombia and Peruú, where the aerosolsíyou know what ahí operate can fly with aircraft registered in other paíwithout any restrictionsón. In these paíaircraft are operated with matrícula de chile CC-, of the United States N, from Colombia HK- (In the case of Peruú) and others, that have allowed these países to be one of those with the greatest annual growth in aviation mattersáutics in Latinoamérica.

The other extreme is  Argentina and Brazil, which are an example in Américh latina, where on any considerationón first isá the aeron staffáutico and the national industry where it isá prohibited by regulationón the use of aircraft with matríforeign ass, although in the úlast toños, these paíyou tooén have presented a large increase in their workáI'm giftéstic, without the need to resort to other measures.

¿Whaté we can wait now in Ecuador?

with this measure, in the prówe're sorry monthsíwe love to see how the aerosolílines LATAM Airlines Ecuador and Avianca-Ecuador irán gradually increasing its fleet, although this will not haveía base Ecuador, hornbeamíto an increase in the núgroup of aircraft operating in Ecuador.

These rotateíeven with their respective HUBs in Lima and Bogotáá, so beá very difficultíeasy to see how it is now, foodífixed tails flying in Ecuador.

We will only be able to see the positive or negative results of this measure over time and whether each of the advantages and disadvantages occur..

I leave the debate open for you to comment on whaté What do you think about this measure?, that in the end what we all hope for, is to improve the businesséEcuadorian commercial prisoner.

Aviation Lawón Civil

Capídrops III,  Art. 6,  1. g):

“Promote the development of aviationón  commercial and support the constitutionón and operation of flying clubs, centers of  training and formationónumber of civilian pilots, civil piloting schools, model airplane clubs and, usually, the activities of the institutions that  have the purpose of contributing to civil aviation development; and, controlar su operationón and development”