LATAM Airlines Colombia Demands 24-Hour Airports, Lower Tax
Colombia · Business
Key Facts
—Slot monitoring. LATAM demands technical, WASG-aligned slot enforcement at Bogotá’s El Dorado airport to ensure fair competition.
—VAT reduction. The carrier wants the IVA on air tickets cut back to 5%, a rate last seen during the pandemic and now under legislative debate.
—24-hour airports. LATAM is pushing for round-the-clock operations at regional airports including Santa Marta, Bucaramanga, Montería, and Pasto.
—Leadership voice. CEO Érika Zárante framed the three-point plan as essential to preserve and expand Colombia’s air connectivity under President-elect Abelardo de la Espriella.
—Market context. The demands follow Viva Air’s collapse and Avianca’s slot consolidation, which have raised concerns about fares and competition.
LATAM Airlines Colombia has presented a three-point policy platform to President-elect Abelardo de la Espriella’s incoming administration, calling for technical slot monitoring at El Dorado, a cut in air-ticket VAT to 5%, and 24-hour operations at key regional airports to safeguard connectivity and competition.
A clear flight plan for a new political cycle
Colombia is entering a fresh presidential term under Abelardo de la Espriella, and the aviation sector is wasting no time in setting out its priorities. LATAM Airlines Colombia, led by CEO Érika Zárante, has moved from informal dialogue to a structured policy platform aimed squarely at the next four years.
The backdrop is a domestic market still absorbing the fallout from Viva Air’s shutdown and the subsequent concentration of prime slots by Avianca. For investors and expats who depend on reliable, competitively priced air links, the airline’s demands are a direct read on whether Colombia’s connectivity will expand or stagnate.
Slot reform at El Dorado: the fight for fair access
LATAM’s first and most emphatic demand is technical, enforceable monitoring of airport slots at Bogotá’s El Dorado International Airport, aligned with the Worldwide Airport Slot Guidelines (WASG). The carrier argues that without systematic oversight, the 80% use-it-or-lose-it rule remains toothless, allowing incumbent operators to sit on unused prime hours rather than returning them to a common pool for reallocation.
LATAM Group CEO Roberto Alvo told Valora Analitik that effective slot monitoring is “pending” and “essential” to verify efficient use. Zárante reinforced the message to El Tiempo, calling slot oversight “one of the most critical tasks in the short term” and insisting it must advance immediately, in parallel with the El Dorado Max capacity-expansion project.
The stakes are commercial and structural. After Viva Air suspended operations in February 2023, LATAM warned regulators that Viva’s unused slots had not been formally returned to Aerocivil, meaning no transparent reallocation had occurred.
Colombia’s competition authority, the Superintendencia de Industria y Comercio (SIC), later ruled that LATAM itself had sold tickets for flights without assigned slots for the October 2023–March 2024 season, ordering the airline to cease the practice and re-accommodate passengers. LATAM accepted the ruling, but the episode underscored the regulatory friction that a clearer slot-governance framework could ease.
For the incoming government, slot policy is effectively market-share policy. At a congested hub like El Dorado, denying competitors access to peak morning and evening banks entrenches dominance, limits route development, and pushes connecting traffic toward rival hubs in Panama City or Lima.
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The VAT question: LATAM Airlines Colombia pushes for a 5% rate
LATAM’s second demand goes to the heart of ticket pricing. The airline wants the value-added tax (IVA) on air tickets restored to 5%, the emergency rate applied during the COVID-19 pandemic, down from the standard 19% that returned on 1 January 2023.
Zárante told El Tiempo that returning IVA to 5% is a central measure to increase passenger volumes and ease the tax burden on air travel. The International Air Transport Association (IATA) and Colombia’s travel association ANATO have lobbied in the same direction, with ANATO president Paula Cortés calling the reduced rate “very successful and beneficial for the Colombian traveller.”
Legislative efforts to cut the rate have advanced in fits and starts. In June 2023, the Third Committee of the Chamber of Representatives approved Bill 392 of 2023, which would lower IVA on tickets and related services to 5% until 31 December 2025.
A subsequent proposal sought to extend the benefit to 2028, and in February 2024 the same committee again backed a three-year reduction. Despite this momentum, none of the bills has been enacted into law, and former Finance Minister José Antonio Ocampo publicly confirmed in March 2023 that the IVA would not return to 5% under his watch.
For investors and expats, the VAT rate is a direct multiplier on the cost of domestic travel. A return to 5% would lower fares, stimulate tourism to secondary cities, and improve Colombia’s competitive position against neighbours with lighter aviation tax burdens.
24-hour airports: unlocking regional Colombia
LATAM’s third demand targets the physical and operational constraints at regional airports. Zárante identified Santa Marta, Bucaramanga, Montería, and Pasto as priorities for round-the-clock operations, alongside runway maintenance in Bucaramanga and improved parking-position markings in San Andrés.
Many of these terminals still operate limited hours, closing at night due to noise restrictions, staffing, or infrastructure gaps. Extending to 24-hour schedules would allow airlines to schedule off-peak flights that connect with early-morning or late-night banks in Bogotá, smoothing congestion and offering more itinerary options for business travellers and tourists alike.
The economic logic extends beyond passenger convenience. Night operations enable overnight cargo movements, supporting time-critical shipments for agriculture and industry.
For tourism-dependent destinations like Santa Marta and San Andrés, more flexible flight schedules can boost hotel occupancy and local spending, particularly for short-break travel patterns.
What the three demands mean for investors and expats
Taken together, LATAM’s platform is an integrated connectivity strategy. Slot reform at El Dorado would lower barriers for non-incumbent airlines, potentially increasing route options and tempering fares on popular domestic and international corridors.
A VAT cut to 5% would directly reduce the cost of flying for anyone doing business across Colombia’s cities or managing properties in multiple regions. Meanwhile, 24-hour regional airports would make it easier to reach secondary markets without sacrificing a full working day to travel logistics.
The policy requests are not yet resolved. The VAT proposals remain legislative projects under debate, and the status of 24-hour operations at specific airports will depend on future regulatory and concession decisions.
For the de la Espriella administration, the choices carry fiscal and political weight. Cutting VAT sacrifices short-term revenue but could generate multiplier effects through tourism and regional development.
Enforcing slot rules challenges entrenched interests but signals a commitment to competition. Expanding airport hours requires investment but unlocks network efficiency.
Frequently Asked Questions
What is LATAM Airlines Colombia asking from the new government?
LATAM Airlines Colombia, under CEO Érika Zárante, has presented three policy demands: technical slot monitoring at Bogotá’s El Dorado airport aligned with global WASG standards, a reduction of the IVA on air tickets from 19% back to 5%, and the expansion of 24-hour operations at regional airports such as Santa Marta, Bucaramanga, Montería, and Pasto. The airline argues these measures are essential to preserve and grow Colombia’s air connectivity and competitiveness.
Why does slot monitoring at El Dorado matter for competition?
El Dorado is Colombia’s busiest hub, and prime slots during peak hours are scarce. Without technical monitoring and enforcement of the 80% use-it-or-lose-it rule, incumbent airlines can hold onto unused slots rather than returning them for reallocation, effectively blocking competitors from expanding routes and limiting consumer choice on fares and schedules.
Has the IVA on air tickets in Colombia already been cut to 5%?
No. The IVA on air tickets reverted to the standard 19% rate on 1 January 2023 after a temporary pandemic-era reduction. Several legislative proposals to restore the 5% rate have advanced in Congress, including Bill 392 of 2023, but none has been enacted into law as of the latest reporting, meaning the 5% rate remains a policy request under active debate.
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