LA PAZ, Bolivia – In just three years, Bolivia’s state airline has pushed aside private carriers, bucking an international trend toward privatization while becoming the leader in domestic flights for a poor Andean country where flying remains a luxury.
Boliviana de Aviacion has abolished first class and sells all seats for the same low prices, marketing the flights with a socialist stamp in keeping with President Evo Morales’ insistence that “all are equal.”
The story of how BoA has managed to fly high while governments elsewhere have been privatizing or bailing out their state-run carriers reflects shrewd timing in filling a void in the market, as well as cut-rate fares that have attracted a growing clientele.
BoA now controls about half of Bolivia’s domestic air travel market. As its routes and earnings have grown, it has announced plans to expand its fleet by buying as many as six new Embraer 190 planes from Brazil.
“BoA has been an interesting bet on the government’s part,” said Armando Mendez, an analyst and former president of Bolivia’s Central Bank. “Little by little, it has captured more acceptance and it competes with the private company AeroSur.”
Mendez said BoA seems to be bringing healthy competition to Bolivia, where five
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