Sunday, January 22, 2012

Bolivia's state airline catapults to market leader �| ajc.com

Bolivia's state airline catapults to market leader �| ajc.com: Boliviana de Aviacion has abolished first class and sells all seats for the same low prices, marketing the flights with a socialist stamp in keeping with President Evo Morales' insistence that "all are equal."

The story of how BoA has managed to fly high while governments elsewhere have been privatizing or bailing out their state-run carriers reflects shrewd timing in filling a void in the market, as well as cut-rate fares that have attracted a growing clientele.

BoA now controls about half of Bolivia's domestic air travel market. As its routes and earnings have grown, it has announced plans to expand its fleet by buying as many as six new Embraer 190 planes from Brazil.