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Jorge Chávez International Airport in Lima, Peru.
Argentina and Peru have signed a memorandum of understanding (MOU) to enhance air service between the two nations, eliminating previous frequency and capacity restrictions.
The move comes two months after Argentina signed a similar agreement with Brazil, part of new Argentinian President Javier Milei’s efforts to further liberalize the country’s aviation sector. Since taking office in late 2023, he has made declarations to privatize some state-run companies, including flag-carrier Aerolineas Argentinas, and adopt an open skies policy.
The latest MOU revises the existing Argentina-Peru bilateral framework, which has been in place since 2005 and restricts flight frequencies between Lima and Buenos Aires to 28 roundtrips per week. Although the new agreement still needs to be ratified by a ministerial resolution before it can be implemented, it will allow for “unlimited frequencies and capacities.”
The respective Argentinian and Peruvian transport ministries highlighted the benefits of increased international connectivity, saying the expansion will enable the entry of new carriers and promote two-way trade and tourism.
Four carriers offer nonstop flights between Argentina and Peru at present, OAG Schedules Analyser data shows, led by LATAM Airlines Group with a 67.2% capacity share of the market. LCC JetSmart has a 12.6% share, followed by Aerolineas Argentinas with 11.5% and Sky Airline with 8.7%.
LATAM Airlines Group offers 43X-weekly frequencies across five routes, connecting Lima’s Jorge Chávez International Airport (LIM) with Buenos Aires Aeroparque (AEP), Buenos Aires Ministro Pistarini (EZE), Cordoba, Mendoza and Salta. JetSmart and Sky Airline each serve EZE-LIM, flying daily and 4X-weekly, respectively, while Aerolineas Argentinas offers daily AEP-LIM operations.
Speaking in March at Routes Americas 2024 in Bogotá, JetSmart CEO Estuardo Ortiz said there is a “tremendous opportunity” for airlines to grow in Argentina—and insisted the Chilean ULCC is ready to act should the government continue to liberalize the sector.
“I think we’re in a historical moment in the aviation industry in Argentina,” Ortiz said. “The big question is whether there is the political and social support to implement the measures. But we have seen changes in the past three months that we have not seen in the previous four years. So, it’s encouraging.”
Meanwhile, work is progressing in Peru to expand LIM, with a new terminal expected to be operational before the end of the year. The terminal will have an area of 210,000 m² (2,260,420 ft.2) at its opening and will be able to serve 30 million passengers per year.
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