Avianca still sees room for reduction of supply in the air sector

São Paulo – the aviation industry in Brazil still has room to reduce supply of seats, as the occupancy rate of the flights have not yet reached an optimal level, said on Tuesday the President of Avianca Brazil, Frederick Quarry.
"I don''t know if we''re going to keep seeing this adjustment on offer, but while the market does not have an average occupancy of 81, 82%, even a little more, there will be room for this adjustment," said the Executive told Reuters, after the company''s announcement on new international routes.
According to data from Abear, the occupancy rate of the domestic flights was in 79,23% in February. On Avianca, the average rate of occupancy in 2016 was 84%.
The brazilian economy recession weakened demand for flights in the country, causing many airlines to reduce supply, in order to alleviate the pressure on the profitability of their operations.
Quarry evaluates the industry still is going through a difficult period, but I might have hit the floor. He said he didn''t see signs of huge improvement at the moment, but does not rule out a small upturn in the second half of the year if the brazilian economy to grow around 1%.
"There is going to be great ... but we believe we can be better than last year," he said.
The Avianca Brazil announced on Tuesday that it will conduct direct flights from Sao Paulo to Miami and Santiago, beginning to your international expansion from the country.
During the announcement, Quarry said that by the end of the year the company will make available a third international destination, which is still under review. Reuters, he just said that will be on the American continent. "Our initial focus will be Americas."
For now, the company has under the focus to regional destinations in Brazil flights, though not discard a push in this area if there is opportunity.
The Avianca Brazil, however, is extending your operation in Foz do Iguaçu (PR) that must pass for three flights in early may, as well as will operate in Navegantes (SC), after the departure of Passo Fundo (RS) for the sake of infrastructure.
Merger
The Chairman of the Board of Directors of Avianca Brazil, José Efromovich said that follows in the process aimed at the company''s merger with the Avianca Holdings, based in Colombia.
According to him, the Working Group of the two companies created by January''s mission is to introduce project to the Board of Directors of the two companies in the shortest term possible.
"Once approved in the two Councils to the merger effectively," said Efromovich. "There''s no reason the two companies did not operate together."