Airlines in Chile New Entrants and Disruptors Analysis¶
New Entrants and Disruptors¶
Based on the provided value chain analysis and supporting documents for the Chilean airline industry in 2024-2025, the primary disruptive forces stem from the continued expansion and strategic approaches of existing low-cost carriers (LCCs) and ultra-low-cost carriers (ULCCs) rather than the entry of entirely new airline companies into the market within this specific timeframe. The key disruptors identified are SKY Airline and JetSMART, both of which employ business models that fundamentally challenge the operations and market position of the traditional dominant player, LATAM Airlines Group.
SKY Airline, having transitioned to a purely low-cost model, and JetSMART, an ultra-low-cost carrier with operations across several South American countries, have significantly impacted the Chilean domestic market. Their disruptive strategies are centered on offering low base fares, streamlining operations for cost efficiency, standardizing fleets, and heavily relying on ancillary services for revenue generation. [Value Chain Analysis] This approach has allowed them to gain significant market share; as of March 2025, SKY held 25.8% and JetSMART held 11.8% of the domestic market. [Value Chain Analysis] Their growth in passenger volumes further underscores their disruptive impact on the competitive landscape and traditional pricing structures. [Value Chain Analysis]
While not a new entrant to the overall market, the announcement and launch of new direct routes by international carriers, such as Turkish Airlines flying directly from Istanbul to Santiago, also represent a form of disruption on specific international segments of the value chain. [Value Chain Analysis] This introduces new competition on particular routes and influences network planning and marketing for international travel to and from Chile.
The impact of these disruptors is felt across multiple stages of the airline value chain, forcing all players, including the established LATAM, to adapt their strategies in areas such as pricing, service offerings, and operational efficiency.
| Value Chain Step | Disruptor(s) | Impact on Value Chain Step |
|---|---|---|
| Aircraft Acquisition & Maintenance | SKY Airline, JetSMART | Focus on standardized and modern fleets (SKY's newest fleet, JetSMART's standardization) impacts MRO needs and acquisition strategies, differing from the diverse fleet management of traditional carriers. [Value Chain Analysis] |
| Network Planning & Scheduling | SKY Airline, JetSMART | Emphasis on point-to-point routes disrupts traditional hub-and-spoke network models, influencing route development and slot utilization at airports. [Value Chain Analysis] |
| Network Planning & Scheduling | Turkish Airlines (new routes) | Introduction of new international routes increases competition and influences network planning for international segments to/from Chile. [Value Chain Analysis] |
| Marketing & Sales (Distribution) | SKY Airline, JetSMART | Aggressive low-fare marketing and heavy reliance on direct online sales channels challenge traditional distribution models (agencies, GDS) and drive intense price competition. [Value Chain Analysis] |
| Passenger & Cargo Handling (Airport Ops) | SKY Airline, JetSMART | Demand for rapid aircraft turnarounds to support high utilization rates impacts ground handling processes and puts pressure on airport efficiency. [Value Chain Analysis] |
| Flight Operations | SKY Airline, JetSMART | Focus on high aircraft utilization influences scheduling, crew management (along with regional personnel shortages), and operational efficiency priorities. [Value Chain Analysis, Forbes Wet Lease] |
| Ancillary Services | SKY Airline, JetSMART | Ancillary services are a critical revenue stream and core to their disruptive business model, fundamentally altering the exchange of products/services with passengers by unbundling traditional offerings. [Value Chain Analysis] |
References¶
- ¿Qué aerolíneas están funcionando en Chile? en Recomendaciones de viajes - Turismocity. (2024, March 26). https://www.turismocity.cl/blog/Recomendaciones_de_viajes/p-Que-aerolineas-estan-funcionando-en-Chile-4329.html
- ¿Hay escasez de aviones y personal especializado en la industria? Aerolíneas en Latinoamérica recurren al Wet Lease para cubrir demanda - Forbes Chile. (2025, January 29). https://www.forbes.cl/negocios/2025/01/29/hay-escasez-de-aviones-y-personal-especializado-en-la-industria-aerolineas-en-latinoamerica-recurren-al-wet-lease-para-cubrir-demanda
- Turkish Airlines volará 4 veces por semana de Estambul a Santiago - Infotur Latam. (2024, December 17). https://infoturlatam.com/2024/12/17/turkish-airlines-volara-4-veces-por-semana-de-estambul-a-santiago/
- JETSMART TUVO VARIACIÓN EN PAXS TRANSPORTADOS - T News. (2025, January 6). https://tnews.com.pe/jetsmart-tuvo-variacion-en-paxs-transportados/
- JETSMART CON EL 13% DEL DOMÉSTICO - T News. (2024, September 24). https://tnews.com.pe/jetsmart-con-el-13-del-domestico/