ALTA Applauds Important Milestone for Aviation Industry in Uruguay as Government reduces Fuel Price by 8%

Miami (January 24, 2013) – Uruguay’s National Administration of Fuel (ANCAP) and the Ministry of Economy and Finance announced recently that fuel prices charged to all commercial carriers that operate in Uruguay will be reduced by 8%, effective January 25th. The announcement also means that the price of fuel in Uruguay is now more closely aligned with that of most other countries in the Southern Cone.

The Latin American and Caribbean Air Transport Association (ALTA) and the Uruguayan Aeronautic Chamber of Commerce (CAMAERO) met with ANCAP again late last December to review a report prepared with the assistance of the International Air Transport Association (IATA) that showed the price of fuel in Uruguay is one of the highest in the region. ALTA and CAMAERO urged ANCAP to assess the findings reflected in the analysis, with the expectation of lowering jet fuel costs.

Alex de Gunten, Executive Director of ALTA commented, "We congratulate the Uruguayan government for the news delivered yesterday by the Ministry of Economy and ANCAP. This is the result of a long and intense effort undertaken by ALTA, IATA and CAMAERO for the benefit of the industry and the economy of Uruguay. ALTA is happy to have supported this initiative and we are delighted that this first milestone has been reached. "

Hugo Perelli, President of CAMAERO said, “We are truly satisfied that the government reached the conclusion it did. This is a great relief and incentive for the industry in Uruguay.”

Fuel represents the bulk of a carrier’s cost, in an industry where margins are significantly lower than most other sectors. Lower fuel costs will positively impact the frequency of traffic to Uruguay, supporting employment, revenues and overall taxes collected by the government.