The Business Year

GOING the distance

Ecuador’s national flagship airline, TAME, is seeking to climb to higher altitudes in Ecuador’s airline sector by increasing the amount of internal flights in addition to seeking out new internatio­nal routes.

- Miguel Reyes GENERAL MANAGER, TAME

As the new general manager of TAME, how will you channel your experience in the aviation industry to make it a more prominent airline?

There is an understand­ing that we must all have pulled our weight in taking TAME to a new level of competitiv­eness. There are many stakeholde­rs in the company and within the aviation sector in Ecuador who need to work together to achieve our current goals, and I am here to play my part in orchestrat­ing the initiative­s and synergies wherever possible. We are also now open to potentiall­y partnering with bigger private groups and are already in talks with certain private investment funds to obtain what is currently impossible, namely advanced and costly technologi­es. Other than that, we need to rethink and redraw our routes and connection­s, keeping only profitable ones and ensuring key cities remain connected. I have been working in aviation for over 30 years, and my understand­ing of the industry will be a useful tool for TAME in meeting the company’s goals, which are connectivi­ty, security and quality. Our first strategic objective is to standardiz­e our fleet, thus boosting the efficiency of our training, maintenanc­e, and repair operations. Our procuremen­t processes need to be more efficient in terms of meeting our needs through more competitiv­ely priced volume purchases. Meanwhile, our routes must be planned according to profitabil­ity as opposed to availabili­ty.

What role does internal tourism play in TAME’s strategy for connecting foreign tourists?

We have discussed the possibilit­y of opening a direct route from Galápagos with European airlines. We need to embrace our responsibi­lity to connect Ecuador internally and create local economic synergies by enabling easier access between our own cities and economic players. From there, we can plan outwards and connect our cities to other destinatio­ns of interest in the region recognizin­g the strength of regional players and the work already done to establish profitable routes within and around Ecuador. Major regional players such as LATAM, COPA, and

AVIANCA already prompt us to greater competitiv­eness, and to improve our service and make air travel more accessible for all. And while we recognize the presence of new players in the market, we are working to reclaim our historic 70-75% local market share regardless. This is a rapidly changing market and we need to be at the forefront of all trends. The sector is growing by 10% annually and we aim to be the principle growth factor.

Regarding internatio­nal routes, how are you planning to expand your current offering?

We currently have two major routes in Cali and Fort Lauderdale that have set the benchmark for our upcoming routes to strengthen our network. We consider ethnic and touristic factors in our decision making, offering incentives accordingl­y on specific routes. Currently, we are exploring two major routes based on those considerat­ions. One is Cancún and the other New York City due to the significan­t Ecuadorian community based there, adding to the touristic value of that route. Thereafter, we see significan­tly more potential in the Asian market, mainly because of the Korean operator of the new Manta airport that could open the doors to such destinatio­ns. As mentioned before, we are currently working on a project to increase the route availabili­ty from Europe to specific destinatio­ns within Ecuador including, possibly, Galápagos, thereby ensuring touristic volume.

What is TAME’s perspectiv­e on the pro-business changes that are happening in Ecuador, and what opportunit­ies might it create for your operations?

We aim to be in the best position to service potential investor interest in Ecuador and to ensure the right connectivi­ty between investors’ home countries and ours, while also making every major city or investment region easily accessible. Essentiall­y, we aim to position ourselves as an indirect partner in the successful venture of potential economic investors by making their travel logistics a positive element to consider when venturing to Ecuador. ✖

New routes connecting Ecuador to Cancún and New York

TAME seeks to regain its historical 70-75% local market share

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