How Avianca Brasil’s Exit From Star Alliance Will Affect South America

Avianca Brasil, the embattled South American carrier that formally declared bankruptcy earlier this year, is leaving the Star Alliance. With its departure, the alliance, which includes heavyweights such as United and Lufthansa, will shrink to 27 partners.

The airline’s demise and subsequent exit from the alliance will certainly leave a hole in Star’s coverage throughout South America. After September 1, only Avianca Colombia, the airline’s larger and better-known cousin, and Copa, Panama’s flag carrier, will serve regional flights in the area.

Avianca Brasil’s exit also opens a wider door for LATAM, the dominant carrier in the region and a member of the Oneworld alliance, to expand.

As to whether passengers will notice the impact, Avianca Brasil’s departure from the Star Alliance may not make that big of a splash. The airline’s presence in South America was dwarfed by that of Avianca Colombia and largely limited to regional flights throughout Brazil. Most international passengers taking advantage of the alliance may thus not notice the difference, minus a few diehards with heavy travel through inner Brazil.

— Grant Martin, Business of Loyalty Editor 

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Grant Martin [gm@skift.com] curates the Skift Business of Loyalty newsletter. He is also a director of product marketing at TripActions. Skift emails the newsletter every Monday.