price of air tickets in Ecuador

You can lower the price of air tickets in Ecuador

¿You can lower the ticket priceéprisoners in Ecuador? Un anáanalysis of what can be done to achieve it.

The answer is yesí, the prices of the passages in Ecuador both international and doméStics can be reduced.

For it, Some factors must change in our país to promote this important means of transportation, which worldwide is a great ECON stimulatorómonkey.

In a previous issue we reviewed the Reasons that increase the prices of tickets in Ecuador And now we will see whaté can be done to download them. There is so much to do, but it can be done if the will exists.

Well and la regulationón tariffía

Before going into details of what can be done, it is important to indicate that the market does not need or should be regulated (on the subject of prices) by no polic authorityíAeronáutica to impose pr pricesínamos and máwe moan.

the aviationón World Cups based on rules BáSupplies of the supply and demand market, So force the airlineíneas to operate with stops or míWe only contradict the self -regulationón of the market and even, against what he couldíwe love to say, Good práCTICAS ITA IACA.

Competition

The main factor to allowá I decreased itón of the costs of the Passages Doméstic and international will beá The arrival of new competitors.

In the international market we already have significant growth with the arrival of every time más aerolídenies, increase in frequencies and capacity by those already operating. Therefore, if we search with time and following the recommendations to find cheap tickets, We will see that there is a reductionón of the costs to fly abroad.

A Los judgmentéstic, a quartz o o más Competitors allowá energize the market, benefiting all airlinesíneat and above all, benefiting the user, who seeá minor prices in promotions or rates Básicas and ceilings below the current.

The entry of new competitors does not affect current operators, otherwise, stimulates the market and máS people will haveá Access to lower and accessible rates.

Taxes

Each ticket that is bought in Ecuador, Sea Internationaléstic, is taxed, specíThe VAT to the 12% that we know very well and although it is not significant in a rate of $50, on an international ticket $1.000 we are talking about $120 dóhomes, that for a family of 4 people is a high cost.

¿You can do something with VAT? Of course yesí And a good example is what isá arguing at high levels in Colombia, donde isá and inálysis to impose a differentiated VAT for the purchase of tickets toéprisoners.

Another tax thatún remains in force and that is dueíTo modify is known as QB tax, which is an additional value to the 5% for fuel cost, which was implemented when the value of petróI read overtakesó the $140 per barrel, totally outdated to Dífrom today.

Internationally, it is essential to dismantle or completely eliminate the collection of $50 dólares per passage issued in Ecuador with concept of the EcoDelta and alsoén the Powerístic For passages issued abroad towards our PAís.

Fees

The next item that users pay in a ticket is the fees, which are:

  • security fee.
  • Airport taxes.

It is a topic Más complex, but not impossible to achieve. It must be taken into account that airport rates allow the terminals toéReas continue to invest in infrastructure, búSqueal of new routes, technologyía and many others.

We can say that it is complex to make a reductionón of the airport taxes that users pay in tickets, especially, at privately run airports, but it is possible and an example of this is what Chile has done in its main airport, Arturo Merino BeníSantiago complexion, where to the 2020 be achievedá a reductionón of the 40% of these direct values ​​to the user, promoting tráI'm theéinmate and increasing the collectionón for the same.

¡Whaté Lower the passages!

This is the call that users use very often on social networks and it is understandable and even, necessary. the aviationón worldwide is a great contribution to the economyíto the países y más aún, Must be from access for all.

Minor costs in ticketséIncome not only generates greater income for the industry, spaghettién increases tourism and dynamizes the economyíto generating más direct and indirect work places, but there is much to do and much to continue improving.

Some steps have been taken, Como la Generationón of incentives for airlinesíneas in airports administered by the DGAC and the JET A1 fuel subsidy in these, Open skies (potential to eliminateón del ISD), But you have to go más allá.

Everything that oneí It is proposed is possible to perform, but it depends largely on the will of all the actors in the industry, Government that provides attractive incentives and tax reductions for airolílines and airports, graduationón turnístic, facilitationón of tráMITES FOR THE ARRIVAL OF NEW OPERATORS, Improvements in import processesón of spare parts and much más.

We have made a first ANálysis of what can be done, Although we can enter topics Más téCnicos that I hope to do it in PRóyou deliver, the important thing, it's possible.

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6 Comments on “You can lower the price of air tickets in Ecuador”

  1. The fuel subsidy should be in all airports because they do not benefit private but all airlines for the benefit of passengers
    That subsidy must be very well regulated to avoid abuses

  2. I have doubts that these measures achieve the desired objective beyond issues such as VAT is a tax policy. Rates disappear but that does not guarantee lower rates. Greater competition may be but it has already been proven that it is not the long-term solution. The solution is the auction of routes and frequencies

    1. If the rates and taxes proposed here were reduced, It is already in society and authorities to ensure the lowering of tickets, but without any doubt, the best way for this to be, is more competitive, no doubt about it.

  3. Hi Nicolas,
    What do you think of a post about credit cards allied to airlines? What are its benefits, differences and which one do you advise to get. Cup, American, United, Iberia, Avinaca and Latam have them with various financial entities in the country, but i think i need some. Sky Team is now the alliance with the largest presence in Ecuador (four member airlines, soon five with the arrival of AirFrance) and none of them offer this benefit.

  4. Totally agree
    In addition to that, another security fee charged by airports is forgotten
    The most serious thing is the VAT and also the ISD foreign currency exit tax that the airlines have to pay and that between VAT ISD are a matter of negotiation in open skies with several countries with the US at the head
    Note that the new operation New York Guayaquil of the company Easter Airlines is pending these agreements
    Airport taxes are the easiest to handle for both Tagsa and Quiport, as the volume helps them to do so
    Hopefully success and with that lower prices

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