AIR TRANSPORT

Juan Pablo De Armas Romero

Harry Vizcaino
INDUSTRY
 CHINA

• Capital Beijing

• Population :1.3 Billion

• GDP: $20853 TRILLION

• Currency: Renminbi (Yuan)

CHINA NATIONAL
AVIATION
HOLDINGS – AIR
CHINA
 FACTS

• Year Founded 1988

• Fleet: 391 Airplanes

• Hub: Beijing Capital

• Destinations: 201

• # Of Employees: 50000

• 100% Government Owned

 HISTORY

• 1988 – government split operating divisions of CAAC

• 2001 – Merger Plan (Consolidation with China Nal Aviation Holding)
• 2006 – joined StarAlliance
• 2009 – expansions in Hong Kong
• 2010 – full control of Shenzhen Airlines, first airline that offers domestic flights and bus services
• 2013 – first internet flight in Mainland China
 RAMAMURTI STRATEGIES

• Global Consolidator

• Global First Mover

• Local Optimizer

• Vertical Integrator
CHINA
SOUTHERN
AIR HOLDING
COMPANY
 FACTS

• Year Founded 1988

• Fleet: 391 Airplanes

• Hub: Beijing, Guangzhou

• Destinations: 190

• # Of Employees: 100000

• 100% Owned by government

 HISTORY

• 1984 – decentralization of CAAC

• 1992: - Expansion in fleet

• 1995 – Expansion to US

• Member of Sky Team

 1 2
RAMAMURTI
Local Optimizer Low cost partner
STRATEGIES
 CHILE

• Capital: Santiago de Chile

• PIB: USD $13 342
• Currency: Chile Peso
• Population: 18000000 average
• Chile has been one of Latin America’s fastest-
growing economies in recent decades, enabling
the country to significantly reduce poverty
LATAM AIRLINES
Foundation: 2012
Past name: Lan Airlines, Tan Airlines
Headquarters: Santiago de Chile
Services: Air transportation of passengers and cargo
CEO: Enrique Cueto
Employees: 52,000 workers
Position in the world: 10th largest airline
Company
Alliance: OneWorld
 Geographic location

LATAM AIRLINES: CHILE, ECUADOR,

PARAGUAY, BRASIL, COLOMBIA,
ARGENTINA, PERU AND MEXICO ,
 LATAM AIRLINES

• Entry modes:
• Colombia: Merger/ acquistion
• Peru: Greenfield
• Ecuador: greenfield
• Argentina: Merger / acquistion
• Mexico: Green field
• Paraguay: Merger/ acquisition
• Brasil : Merger/ acquisition
LATAM AIRLINES
• Global Consolidator
• Global first mover

 Reputation and Brand

 Managerial capabilities
 Corporate governance/ internal control
 Institutional and cultural adjustment
ma­naging home and host poli­tical dynamics,
f) value chain man­agemen­t,
g) knowled­ge acqu­isition
 h) market positioning issues.
 LATAM AIRLINES

Patterns, operational difficulties

 MEXICO

• Capital: Ciudad de Mexico

• PIB: USD $10 714,826
• Currency: Mexican Peso
• Population: 112 336 538 average
• Mexico is the second largest economy in
Latin America. The Mexican economy is
decelerating with annual GDP growth
slowing to 2.3 percent in 2016, down from
2.6 percent in 2015. 
 AEROMEXICO
 Foundation: September 14 1934
 Alliance: Sky team
 Headquarters: Ciudad de Mexico
 Services: Air transportation of passengers and cargo
 CEO: Andres Conesa
 Employees: 13,067 workers
 Position in the world: top 10 Latin America

Taken from Latins Airlines most valueble web page

GEOGRAPHIC LOCATION
 AERO MEXICO

• USA: Merger/ acquisition

AEROMEXICO
• Low cost Partner
• Local optimizer

 Reputation and Brand

 Managerial capabilities
 Corporate governance/ internal control
 Institutional and cultural adjustment
ma­naging home and host poli­tical dynamics,
f) value chain man­agemen­t,
g) knowled­ge acqu­isition
 h) market positioning issues.
 AEROMEXICO

Patterns, operational difficulties