TAME suspends Quito-New York service citing profitability and insufficient studies before launch

    TAME confirmed (13-Jan-2019) plans to suspend Quito-New York JFK service effective 01-Feb-2019. According to OAG, the carrier operates the route daily. The carrier stated: “2019 is an operational transition year and one of implementation of a new business model… focusing on strengthening the domestic market and reduce international operations, flying routes which allow to generate financial and social profit”. The carrier justified the “temporary” suspension of the service to the following:

    • End lease of one A330 in Jul-2019, with C check being carried out in Feb/Mar-2019;
    • The route has not been profitable for the carrier. TAME stated: “It was launched without appropriate technical studies, without considering a backup aircraft to solve operational issues and appropriately protect our clients”. The route has generated over USD40 million in losses.

    The suspension represents fixed, variable and indirect cost reduction. The carrier stated it could resume the route in the future with more modern aircraft and a better product. [more – original PR – Spanish]