New incentives for airports administered by the DGAC

The Government of Ecuador has created new incentives for airports managed by the DGAC with the aim of promoting the use of these terminals toéreas.

The airports of Esmeraldas, Manta, Salinas, Santa Rosa, Catamayo, Latacunga, Sour Lake, San Cristóbal, Coca, Macas, Shell Mera and others, Starting this week, they have new incentives aimed at airlines.ídenies.

In order to create new routes and increase frequencies to those already existing in these terminals managed by the Directorateón General of Aviationón Civilian of Ecuador – DGAC, a series of incentives have come into force to stimulate supply and demand.

The incentives that have been approved by the National Aviation Councilón Civil – CNAC low Resolutionón 013-2018 are the following:

Commercial Incentive Plan for airport users (Leases)

• Reductionón up to a 40% in collection of cálease rates for tenants at airports managed by the DGAC.   
• Maintain related services at airports such as:
• • coffee makerías / Stores
  • palletizers
  • Temporary warehouses

Incentive Plan for New Regular Operations

Objectives

• Ambitious incentive plan to attract new operators toéprisoners.
• Promote greater supply and better services for users.
• Stimulate the development of the commercial aviation sector in the network managed by the DGAC.

Profits

• Discounts on operational rates:
  • Landing
  • Illuminationón
  • Protectionóon the fly
  • Parking lot
• Discounts apply for a period of three toños and they go from the 30 al 70 % discount on operational fees.

Characterístatic

• New Dom Operationséstatic
  • MíYOU 3 routes.
  • Use an airport managed by the DGAC as an operations center.
• New International Operations
  • The discount variesía according to the núfrequency group.
  • the airíline must operate to and from  an airport managed by the DGAC.
  • Low terminal usage fee from USD 19,50 a USD 14,00.

• Increase of frequencies to the airports managed by the DGAC
  • The discount applies to the frequencies that are increased.
  • The DGAC will beá he is in charge of defining the applicationón of this discount.

• General Provisions for new operations
• • La operationón must be for at least 3 añor generateán alternative exit costs.

Requirements

• Operationón International
  • Permiso de Operationón Regular
  • Current AOC
  • The route mustá have as destination an Airport Managed by the DGAC.
  • There is no mínumber of routes to operate
  • The discount varies depending on the number of weekly frequencies to operate; 1-3, 4-7, but from 7.
  • The discount does not apply to airport fees.
  • Operate míwhat 3 años, early departure will generate alternative costs.
• Operationón Domestica
  • Permiso de Operationón Regular
  • Current AOC
  • The discount applies to all DGAC airports.
  • The operator mustá have its operations center in a DGAC airport. (HUB)
  • The operator mustá operate míYOU 3 domestic routes. (May include Quito or Guayaquil)
  • The discount does not apply to airport fares.Operate míwhat 3 años, early departure will generate alternative costs.

News of the DGAC Airports

It is known that the Latacunga and Manta airports have seen their demand reduced due to different factors and the other airports managed by the DGAC have not achieved «take off» due to lack of supply and competition.

With this as initial background, The Ecuadorian Government must cover the dédeficit generated by these airports due to the lack of users.

From the 2013 al 2017, These airports have generated a negative result of más de $13 millions of dóhomes.

Factors such as the earthquake that affectedó to Manta and himself tame effect, which reduced its offer of seats to all DGAC airports, going from 1.6 million seats in 2013 just 711 thousand in the 2017, have had a negative impact on these núgroupers from the toñO 2016 To the date.

The airports of Latacunga, Manta, Coca and Saint Christóbal represent the 69% of revenue from the DGAC airport network.

General passenger supply decreasedó from 1.830.220 at 2013 a 1.632.129 at 2014 which corresponds to -10.82%, at 2015 decreasedó in a -5.25%, at 2016 in a -13.25%, and finally in the 2017 on -27.46%.

Likewise, passenger demand decreasedó from 1.151.125 at 2013 a 1.149.308 al 2014 corresponding to -0.16%, at 2015 decreasedó in a -7.51%, at 2016 -19.03%, and in the 2017 -15.86%.

The new incentives

As we reviewed above, the new incentives are intended to stimulate supply and demand, with reduced prices for Aerolícurrent lines that want to increase frequencies or new ones that want to start flying.

Thought of strengthening the DGAC airports and making them competitive against the concessionaire airports of Quito and Guayaquil, the authority applyá the following discounts for 3 años and based on the frequencies to operate:

New operations sunéstatic

new operations

Frequencies increase

Inversionón in airports and navigationón

In the úlast 10 años, The Government has made large investments to position the país as a reference in modernity and security in the regionón.

With an inverseón of más de $364 millions of dóhomes, It is time for the state network of DGAC Airports to begin its recoveryón and these incentives have a clear objective to achieve.

Projectionón

After having lost más de $1 millón of dólares in income comparedón of the 2017 al 2016, it is expected that the 2018 this number increases, especially, due to the null commercial activity of the Latacunga Airport.

With the analyzed data and with the new incentives, that also add upén al fuel subsidyón JET A1, It is expected that with growth (bass) of the 3%, al añO 2022 returns to the income level of theñO 2017.

Of course, este plan está thinking so that growth is greater than 3% annual, so the income can beían achieve sooner with the arrival of new aerolíneas how Viva Air, Aeroregional, Airplanes and other potential.

Now, We just have to wait to see the positive results of these new benefits that will be seenán translated into benefits for the user and reductionóNo. of expenses for the DGAC.