Another Failed Startup: Ecuatoriana Airlines

In 2021, two new Ecuadorian startup airlines were announced: EQUAIR and Ecuatoriana Airlines. The first launched operations and flew with a fleet of Boeing 737-700 aircraft, flying domestically across the South American country, but unfortunately ceased operations a few days ago. The second has yet to operate its first flight and may never take off the ground. What happened to it? Let’s find out.

What was supposed to be

In April 2021, we published a story about Ecuatoriana Airlines, a new startup in Ecuador planning to launch operations from Quito International Airport (UIO) using a fleet of Boeing 717-200 and Dash 8 Q400 aircraft. A year later, the airline announced the acquisition of two Dash 8s from US-Bangla Airlines.

Moreover, this new startup would revive the brand name of the former Ecuatoriana de Aviación, a famous carrier in Ecuador that ceased operations in 2006. The new company even released the branding and livery of the company.

In interviews, Eduardo Delgado, the Chief Executive Officer and founder of Ecuatoriana Airlines said the company would be a very accessible airline, not a legacy carrier with high costs. The plan was to reconnect the country under a new brand company of Ecuadorian origins, a clear message directed against the country’s two top companies, Avianca Ecuador and LATAM Ecuador, which are not of Ecuadorian origin.

The first flights for the company were planned to connect Quito with Guayaquil International Airport (GYE), the most sought-after route in the country. You can see in the two maps above the proposed routes by the airline.

But what has happened?

Despite the announcements in 2021 and 2022, Ecuatoriana Airlines has not yet taken off. It doesn’t even have a fleet as of October 2023.

In a recent interview, Ecuador Delgado shed light on the current state of Ecuatoriana Airlines. He said the project is still ongoing and almost ready but hasn’t been able to secure enough funding to launch it officially. According to him, the economic issues globally and the political uncertainty in Ecuador have made investors nervous. The recent bankruptcy of EQUAIR may not help to instill confidence in possible investors since that company was unable to establish itself as an alternative in the country.

Delgado said in an interview with El Universo that an airline requires a lot of investment, and there are a lot of risks. Setting up a carrier in the Latin American region is particularly risky, as seen by the 11 companies that have folded since 2020.

But Ecuatoriana Airlines could still fly in the future. The executive said the management is working to secure the fleet and support from an undisclosed US carrier. Ecuatoriana Airlines believes the Q400s are ideal for the Ecuadorian geography and would allow them to fly to other destinations such as Esmeraldas, Loja, Lago Agrio, and Salinas, which do not usually have enough commercial service.

Ecuador lost an airline

A few days ago, the Ecuadorian aviation market lost its second airline in four years. EQUAIR, a company flying with a fleet of Boeing 737-700s, unexpectedly ceased operations, calling it “the responsible thing to do.” The country remains served by Avianca Ecuador and LATAM Ecuador.

Why do you think Ecuadorian airlines have so much trouble taking off? Let us know in the comments below.

Source: El Universo.