The Argentine airline based in Córdoba province, Southern Winds, kicked the table. And it did not do it anywhere, but in the Miami route, one of the most coveted and demanding of the Latin American market.

It reduced rates to unimaginable limits only two years ago and recreated a new on board concept with a new class, the “Surf”, that flirts between tourist and business.

The arrival of Southern Winds to Miami with four weekly frequencies (later trimmed to three) came together with a 399-dollar promotional price, nearly 33% less than the market average. According to the company, its secret to come out with such a cut is in a small structure and a business plan, which contemplates an unfavourable first stage, later achieving balance. In the year 2000 ticket to Miami cost U$S 1040, in the 2001 they were priced at U$S 600 and now Southern Winds plummeted them 40% more, forcing the competitors to fasten their belts.

         The airline also bursts into the Buenos Aires – Miami air offer with an innovation labelled as “the commercial strategy’s soul”: the Surf class.

It is about an intermediate class with business seats, ample leg space and a premium catering at a 600 dollar cost.

         “The tourism operators have to accompany us to assemble a package so that the North Americans travel to Buenos Aires. To travel in our business class, lodge in Buenos Aires five-star hotels, eat dollar and a half sirloin steaks or go skiing at half price will turn out cheaper than a business ticket in another company” Christian Maggio, Southern Winds vice - president declares enthusiastically.

         The company uses two Boeing 767-300, with a two hundred and one-passenger capacity.

Maggio estimates they will reach 60% occupation rate on its flights to Miami by October. “By the end of the year we expect to climb up to 70 or 80%”. He says.

         They calculate they will start the Mexico and Lima flights, route that has already been granted them and “ has a high occupancy level”, according to the executive, brother of Juan Maggio head and founder of the airline, next year.

         Southern Winds also has permits to fly to Barcelona and Milan. In the company they assure the cargo segment is the ideal complement for its development.

“The North American and Argentine operators know the Boeing 767 very well because it flew a lot between Buenos Aires and Miami. It is plane that with a low passenger occupancy permits to transport fifteen tonnes of merchandise or ten if most of the tickets were sold” says Martín Vazquez present commercial manager for Southern Winds and until a short time ago manager of the cargo department.

         “The holds in the routes towards the United States have an average occupancy of 90%” Vázquez expressed. “In the flights towards Argentina instead, the average is close to50% he adds.

         From Buenos Aires the most embarked products are the usual leather, fish, seed and primary products. “These are the classics, although we also carry some new items that require certain industrial process, such as dulce de leche”, the Southern Winds executive points out.

For traffic towards the rest of the United States, Vazquez explained that up to the present moment they only offer the alternative of connecting Buenos Aires with Miami, although the Argentine products can fly to any other destination by FedEx, “company that is our ally for this type of cases”, according to the commercial manager’s words, from there.

         Really, he agreement with FedEx is only for the SW Box clients, a service that Southern Winds offers for the delivery of packages and envelopes.  “The same way they can use our company to send a packet to Mendoza, they can also do it to send it to Washington”, Vazquez illustrates. The agreement with FedEx is for the services in the United States as well as in Argentina.

         “We are not going to give the cargo business a great boost, we have already done it”, Maggio assures. On his part, Arturo Sobrino, responsible for SW operations in Miami, assures that “cargo is the ideal complement for the growth of the company”. The cargo that arrives to the Miami airport is handled through the warehouse the Iberia Spanish company has.

         Due to lack of investment in airport safety, the United States reduced the Argentine aeronautic rating, by which it does not accept the establishment of new routes. Because of this SW had to resource to the Iceland company Air Atlanta technical support, whose licence fits the United States aeronautic authority’s norm.

         This generated the angry complaint from Aerolíneas Argentinas, which according to SW vice president only pursues the limitation of a competitor.

Cristián Maggio did not discard the possibility of taking legal action against Aerolíneas for damages.

         “The flight is authorised by all the Argentine and North American offices. If Aerolíneas pursues something it is not for a legal matter but a market issue. That is why we will not allow any pressure on part of Aerolíneas”. Maggio states.

Domestic traffic

         Southern Winds strategy of flying abroad has one of is pillars in the Argentine currency devaluation. With the aircraft leasing costs, fuel and other consumables in dollars, it is little less than impossible to survive with the meagre domestic traffic tariff in pesos (from January to September 2002, the peso was devalued from 1 to 3.60 with respect to the dollar). Flying abroad and invoicing in dollars was, therefore, the only way out for the airline.

Nevertheless, SW is not willing to abandon domestic traffic” We will continue covering the same destinations. Maybe there will be fewer frequencies, but bigger planes will be used. In fact, the first Boeing 737 has already arrived after being re furbished at the Lan Chile hangars, the second will arrive at the end of October and we will carry on like that until we reach ten 737s towards March next year. These planes will triple the offer we have today with 50-seat planes”, Maggio assured.

         With respect to frequencies between Buenos Aires and Córdoba, the three frequencies belonging to SW will add to the five belonging to AIRG derived from an agreement between both airlines.