Star Alliance chief warns Latin America about threat of Gulf carriers

Latin America is steeling itself to challenge the growth of Gulf carriers on the South American continent.

Speaking at the Latin American Air Carriers leaders (ALTA) Forum in Panama City Star Alliance chief executive Jaan Albrecht warned Latin carriers that the huge expansion plans of the Gulf airlines will have an impact on them sooner rather than later.

Albrecht told the Forum that wi th large numbers of widebodies on order, most for new capacity and not substitution, that the carriers would be looking to increase their routes into the continent.

"This part of the world has to put a lot of attention to the expansion of Gulf carriers," he said.

Plenty of these aircraft will go on to secondary and regional destinations, including some in Latin America, Albrecht said. This is a “frightening prospect” and one not to be underestimated as a competitive challenge, he said.