December 19th, 2011
Latest news update …
Official information coming from the two major airlines operating Galapagos Islands flights (i.e., TAME and AEROGAL) in regards to flight rate increases from January 1st, 2012:
AEROGAL states the following …
USD $50 per person per way (e.g. Quito-Galapagos or Galapagos-Quito) for flights to/from Quito for Baltra & San Cristobal
USD $50 per person per way (e.g. Guayaquil-Galapagos or Galapagos-Guayaquil) for flights to/from Guayaquil for Baltra & San Cristobal
TAME states the following …
USD $70 per person per way (e.g. Quito-Galapagos or Galapagos-Quito) for flights to/from Quito for Baltra & San Cristobal
USD $60 per person per way (e.g. Guayaquil-Galapagos or Galapagos-Guayaquil) for flights to/from Guayaquil for Baltra & San Cristobal
As of January 1st, 2012 the fuel subsidies for airlines will eliminated, even though the various domestic airline companies have been trying to negote with the government for a gradual elimination of the fuel subsidies. The announcement was made on Saturday, November 26th by President Rafael Correa in his traditional weekend national public radio broadcast.
Original (Spanish) information source: http://www.elcomercio.com/negocios/precios-pasajes-aereos-subiran-enero_0_598140316.html
President Rafael Correa explained that the fuel subsidy incentive will remain for those cargo and passenger airports that are managed by the State/Government. The direct provision of aviation fuel will only apply to aircraft refuling in Latacunga (Cotopaxi), Esmeraldas, Santa Rosa (El Oro), Tena(Napo), Salinas (Santa Elena), among others, with a 40% discount (or subsidy). The state owned Petrocomercial is responsible for these refuelings.
The objective of this strategy is apparently to help invest in the development of these locations. According to Coordinating Minister for Production, Santiago Leon, the State no longer received approximately USD $ 90 million this year for these subsidies. ”It is true that many Ecuadorians travel, but the percentage level is not the majority,” he said after acknowledging that the price of airfare will increase.
According to the Government, the increase of air travel should not exceed 15%. ”He who has to pay USD $160 can expect to pay USD $200,” Correa said.
Marco Subia, the President of the Association of Airline Representatives of Ecuador (Arlae), said that he does not know yet the exact mechanism by which the fuel subsidies will be eliminated. He further stated that this would be a “fatal blow” to the airlines who will be forced ti increase the cost of airline tickets to cover this increased cost of fuel.
