To dive deeper into Skyports’ strategy and plans for Colombia, Finance Colombia Executive Editor Loren Moss had a conversation with Daniel Salamanca, Skyports Colombia’s general manager.

Finance Colombia: Help us to understand a little bit about Skyports as a company. Why did you choose Colombia, and what can we expect to see here in Colombia?

Daniel Salamanca: So I can tell you a little bit about my background, I am an aeronautical engineer. I have worked for approximately seven years where I have developed different types of processes, especially in the industrial area here in the country and one of the first projects I participated in was with the government where through smaller drones, we used drones for laboratory sample transportation. That was the first test concept that we tried here in the country.

Latin America is a very dynamic place for these types of tests. Possibly people relate [to drones] more as a hobby or for audio-visual production than as a professional thing, but the impact that drones are having in the Industrial sector are changing industries. It’s a game-changing factor in the technology sector, it is very important.

“It’s not a transatlantic thing, but this will be able to transport a person from Rionegro to Medellin in 2 minutes.”

Skyports is basically dedicated to two business lines, a short-term line and a long-term line. The short-term line is dedicated to cargo delivery with low to medium capacity drones, which means that we develop through a customer supply chain structure where we move something from point A to point B, that’s what we do.

On the long-term, and understanding a little bit about the aviation story, the first operators were cargo and later passengers, so [we envision] the same thing happening with the revolution of drones. The midterm bet is to achieve the ability to develop vertiports, which are ports that are the necessary infrastructure to land air taxis, drones that can take passengers between cities, between coasts, so it’s a thing that it’s more dedicated towards aviation.

It’s not a transatlantic thing, but this will be able to transport a person from Rionegro to Medellin in 2 minutes, so let’s say that’s the bet. Currently we have operations in different parts of the world. We have operations in APAC, in Singapore, in Scotland we have a successful case in the health sector. And currently the company selected Latin America for a reason and especially Colombia, and that is because we have identified that there are possibilities, there are opportunities for connecting these people that live in rural areas.

So that’s the mission that we have at this moment, and with this type of technology we want to democratize the access to supplies, logistics, goods and even with a more humanitarian focus, and that’s why we chose Colombia, besides the fact that this country, having its characteristics. It’s a country that provides a certain amount of technology, a dynamic environment, especially Medellin, which works as a hub in this topic. So due to the opportunity and conditions that we found here, with the difficult times that people spend trying to gain access to products, food; the geographical conditions, political conditions, thanks to all of that we see opportunities where we can focus and expand the service throughout Latin America in general.

Finance Colombia: You mentioned several things, one thing is that obviously yes, there are challenges that we have here in Colombia as well as there are many areas where the access is only via ships and boats: speaking of Chocó, speaking of Nariño, there are areas like Norte de Santander and Catatumbo where the security situation is dangerous and there are drone use cases for surveillance of oil pipelines for example, but you also mention other things that are surprising to me, when you speak about drones as a way of transportation for people.

I imagine that is not approved in any country for commercial use, it must be in a test stage, isn’t that very futuristic? Something that can be conceived in a more of a long-term way like something we are not going to see in 2022 or 2023, since it’s still in the experimental stage. The process to test a new airplane which would be like FAA, European Union or Aerocivil, is a process that takes years and years so when you’re talking about going from the Airbus 320 to the Airbus 340, there’s a process of 5 to 10 years, so isn’t the idea of passenger drones more like a dream?

I can understand medicine transportation, for example, I know Skyports has a mail delivery project in England, but is transporting people like a dream or is more like a project where you can say “yes, in three years we’re going to move people” or will it still be just products like medicines and food?

Daniel Salamanca: You just said something very important Loren, it’s a bet towards the future. In this midterm line, which I just mentioned to you, what you’re saying is very clear, we only transport small cargo through smaller drones that can take up to 5, 6, 7 or 8 kilograms.

That’s what’s happening currently. Now, despite that we are aware that in the world there are a few companies, Airbus, even new companies, startups, that are developing the concept of air mobility. Countries like Singapore & Dubai are exploring the opportunity of having vertical ports, which is infrastructure oriented to this type of technology. Also companies in Europe and the United States are making the first tests of this [passenger transporting] equipment.

What we know is that this at some point transition will come, and what we’re doing is to prepare the land, the infrastructure, and the logistics to be able to at some point have the capacity of let’s say, providing the service in this kind of air mobility infrastructure. Obviously we can say it’s a dream but it’s a dream that it’s becoming tangible. Every day there are more players in the field, every day doing tests of these types of drones to transport people, and they are developing the infrastructure, the heliports where the drones will be parked. Yes, the concept definitely sounds very futuristic compared to what we have right now, but there are already many companies in the world and even regulatory bodies and institutions working to create regulations so that these can go from a dream to a reality. So far we’re just focused on what we can do which are deliveries with drones, taking a load from point A to point B.

Finance Colombia: Speaking of the commercial aspect of it, the good thing about a drone is that they are fast, and they don’t have to go through streets and road traffic. Two cities can be relatively close but there’s a mountain separating them, so travel is slow. Before from Santa Fe de Antioquia to Medellin it was like six hours because there was no tunnel, and we had to go up the mountain and then go back down.

The drones have limited capacity, and I imagine that due to the operational cost I can’t say: “I want to supply everything to a town.” So due to the delivery cost, the focus has to be on high value products, right? What is the model so that it can be profitable for the company? Obviously by the capacity of the drones, commercial limits and also the fact that when we’re speaking of drones, we’re not talking about suburban areas like Chia, or Cajicá or Llanogrande, but remote areas that have no resources. Can you provide these services in a way that is not so expensive for the end user? I’d like to understand the model, taking into account all these types of limitations.

Daniel Salamanca: Perfect, I can give you an example of what we’re doing in Scotland currently. We’re delivering vital medical supplies. With the concept of the drone, it has to be something of high value, that needs to be transported in a short amount of time. And when I say value, I don’t mean money, but for the person that is receiving it, it is something very necessary, valuable. So: high value, short time delivery, and something that needs to be transported quickly.

What we’re doing in Scotland, with this partnership with the NHS, which is an equivalent of the Health Ministry in Colombia, we developed a process for vital supplies for populations on islands receiving government assistance, similar to populations here in Colombia. The paying customer would be the medical institutions, government agencies and nonprofits or humanitarian entities.

Now in the case of low-income areas as you mention, a village in La Guajira, or a community in Chocó, it’s hard for them to afford this service. Despite that, the strategy is to be able to develop alliances with the government. In Africa there is a success case where this technology was applied. Humanitarian aid is part of the strategies we are trying to develop.

Finance Colombia: Something I’ve noticed is that you have the support of Irelandia Aviation. As we know, this is a private equity developer of airlines which has been super successful and has also worked in the US. They are from the same brains behind RyanAir in Europe. Here in Colombia, Irelandia is the engine behind Viva and its success. Tell the importance of having that backup regarding capital, knowledge and experience in the aviation sector? What does it mean for Skyports?

Daniel Salamanca: Irelandia understands the importance of investing in the future of mobility, including drones and urban air taxis, which is something that is happening right now. What we did was to create an alliance, a joint venture, to cover this part of the world. Irelandia provides its whole background regarding the aviation sector in the region, in Colombia, as well as it has done it with Mexico and Peru, and having operations throughout the region. It has this commercial background and also in the operational aspect. This alliance is very exciting and important, so that we can land with a partner that has a lot of experience in aviation development. The concept of drones for Irelandia is clear and its strategy is to bet on them for the future.

Finance Colombia: When will you operating? When will you be flying drones in Colombia? And when will you be operating serving commercial clients?

Daniel Salamanca: The pre-operational phase where we have to obtain the permissions and technical things, pilots, putting all of this together will take place through July of 2022 when we expect to begin the first operations. What we’re doing now is finishing deals with our partners or potential customers to develop proof-of-concept tests for the first or second quarter of next year. This will also depend on (Colombia’s civil aviation regulatory authority) Aerocivil, in order to have  commercial operating permission for the next year. That’s part of the roll out that we’re doing in Colombia, but we will also integrate countries like Panama or Mexico to start operations under the same plan. First we develop tests, then apply for permission with the regulatory entities, giving proof of safety and reliability, and then we jump to the commercial phase, to start billing clients.

Finance Colombia: Besides the government, with a use case like the health ministry distributing COVID vaccines, what’s the profile of your ideal client?

Daniel Salamanca: Regarding health, there is a long logistics chain: there’s the government, there are the suppliers, transportation, pharmacies, and laboratory entities…so the drone gets to be part of a chain that is already working with all the actors of the health sector, suppliers, pharmacies, health entities, government, clinics, and even foundations that also work in the health sector. Also the Red Cross and humanitarian organizations that are involved in the health process could become that ideal client we’re looking for. So, in the health sector, that’s what we’re emulating, since that’s what we’ve done in Asia Pacific and Europe.

Finance Colombia: We want to let our audience know every step and every achievement you make, so let’s stay in touch with Skyports and its growth.

Daniel Salamanca: Thank you very much. I’m here for any inquiry or comment you might have. And we will keep developing this technology here in Colombia to help the communities and the people.

Movistar also provides a smartphone app allowing customers to manage the wireless connection, change passwords, block unauthorized access, and even create temporary guest access, without having to contact customer service.

The new offer bundles free trials of Netflix, HBO and Amazon Prime. For small business customers, the telecom offers the choice of an included standard Microsoft Office 365 license, website hosting, or Movistar television with HD channels.

“Today we are taking an important step to continue providing quality service to our clients in Bogotá, Chía and Soacha, in fact we are the only ones to offer true fiber optic direct to the home in 32 cities in Colombia, allowing [users] to connect several devices simultaneously and reliably, so that they can telework, study in virtual learning environments, entertain themselves and communicate with their families,” said Fabián Hernández, CEO of Movistar Colombia.

Colombia has seen a rapid rise in telework as the government issued orders last year to combat the COVID-19 pandemic insisting that everyone who could work from home should do so. Vast portions of the workforce from executives to entry level contact center workers have adapted to conditions, creating an increased demand for high-capacity residential internet service.

Little Caesars is the third largest pizza chain in the world based on quantity of active locations, and currently operates in 27 countries and territories, including Peru and Chile in South America. The chain currently seeks franchisees to expand into other markets such as Ecuador and Jamaica.

“As we continue to expand our global footprint, we are thrilled to bring Little Caesars Pizza to Colombia,” said Paula Vissing, Senior Vice President of International for Little Caesars Pizza. “The pizza market is expected to grow nearly 20 percent in Latin America over the next several years, and Colombia represents a very important new market for us in the region. We are excited to have the opportunity to partner with LCPZ Colombia to introduce the brand in Bogotá.”

Little Caesar’s operating model blends made to order pizzas with having the most popular choices made and ready to go with no wait. The menu in Colombia will feature several large pizzas including pepperoni, cheese and ham. Other offerings include a Hawaiian pizza (practically obligatory in Colombia) and the 4-N-1 pizza, which has four topping combinations on the same pizza: cheese; pepperoni; pepperoni and Italian sausage; and pepperoni, green pepper and ham. Chicken wings and Little Caesars signature Crazy Bread will also be available.  All pizzas on the menu are large, measuring 36 centimeters in diameter. The San Cipriano, Suba location will also feature a drive-thru pick-up window where customers can pick up items without leaving their cars. The second location is in the Prado Veraniego, Suba neighborhood.

Taking health conditions into account, Little Caesar’s pizzas are baked in 245-degree centigrade (475 f) ovens and only handled with sanitized tools after baking. Around the world, the chain has also reinforced cleanliness and sanitization procedures, increasing the frequency of cleaning frequently touched surfaces including door handles, countertops, phones, and cash registers. The new stores will also have plexiglass shields on the counter, require face coverings for crew members, and enforce social distancing in lobby areas.

Over the past several years, Little Caesars Pizza has increased its international presence by opening restaurants in Latin America, Europe, the Middle East, Canada, the Caribbean, and Asia Pacific.  In 2019, Little Caesars opened in Spain, India, and Barbados.

Little Caesars was founded in 1959 as a single, family-owned restaurant by Macedonian American entrepreneur and professional baseball player Mike Ilitch. Ilitch, who died in 2017 was an active philanthropist and used Little Caesar’s in his efforts by feeding the hungry and providing food during natural disasters. Ilitch was also active in supporting veterans and social causes. In 2014 it was revealed that Ilitch had quietly paid the rent of civil rights pioneer Rosa Parks until her death, allowing her to live in a safer part of Detroit after she had been attacked in a robbery.

“Securing our third location in the Bogota metropolitan area underscores our commitment to growth in this important market. The 170^th Street Bogota Club will be the 8^th club in Colombia and our fourth currently under development, including clubs in Guatemala, Panama, and Costa Rica,” commented Sherry Bahrambeygui, CEO of PriceSmart, Inc.

The 170^th Street Bogota club is expected to open, approximately, in the fall of 2020.  PriceSmart already operates their original Bogotá location near the El Dorado International airport, and another in Chia, a bedroom suburb north of the capital city. Very popular with Colombian shoppers, institutional purchasers, and expatriates living in Colombia, PriceSmart operates stores in Barranquilla, Cali, Pereira, Bogotá, Medellín, and the aforementioned Bogotá suburb of Chia.

In Colombia, PriceSmart is often the only retail outlet that consistently offers brands and products common in North America such as pure maple syrup, cottage cheese or bacon. Founded by warehouse club pioneer Sol Price, the chain offers many of the same products offered by warehouse club Costco in the US. Many of Costco’s Kirkland store-brand products can be found in PriceSmart warehouse clubs in Latin America and The Caribbean..

This launch will come just weeks after the company opens the doors to its first location in Bogotá on May 6, the date when the brand officially plants its flag on the Colombian market. This large, 18,000-square-meter store is nearing completion and will occupy two floors in the capital’s Parque La Colina shopping center (Centro Comercial Parque La Colina).

Photo: As with its store in Santiago, Chile, the Swedish retailer is hoping to further expand its Latin American presence by opening at least three stores in Colombia this year (Credit: Costanera Center, Santiago)

To drum up interest in this grand opening, H&M Colombia will give away gift certificates of roughly $200 USD to the first two people who show up in line. The next 300 will receive $50 USD gift certificates, and the following 1,000 shoppers will get $20 USD off their purchase.

“We are happy to expand H&M in Colombia with our next store that will open in Bogotá,” said Daniel Kulle of H&M North America earlier this year. He believes that the rising number of middle-class consumers in the nation will lead to high demand for the company’s “fashion and quality at very competitive prices.” Kulle added that, “we hope to bring something new and exciting for the Colombian market.”

Further expanding on H&M’s rollout in the Andean nation, a third location is already in the works. According to reports, it will be located in the La Felicidad mall (Centro Comercial Multiplaza La Felicidad) in Bogotá.

H&M’s expansion into Colombia is a part of its global push to increase its physical presence throughout the world. In 2016, the retailer launched its first stores in locations including Cyprus and New Zealand, and it has named Vietnam, Iceland, Georgia, and Kazakhstan, along with Colombia, as its top new markets for 2017. H&M also counts Mexico, Chile, and Peru among its newer focus areas within Latin America.

While participating in the regional forum of the National Development Plan (NDP) in Bogotá, Cardenas said that the Financial National Development (FDN), under Minhacienda, the Ministry of Finance is conducting financial analysis and structuring to establish which part of the project will be built with public funds and what could be funded through Public Private Partnerships (PPPs).

“The Development Plan authorizes the government to invest in rolling stock (train cars) and for the national government to contribute up to 30% of the total investment of the Bogota Metro project,” said Minister Cardenas.

The financial structuring should be completed by May, so that a tender or bidding process may be floated in the second half of the year.

He said: “Bogotá has come out well in the Development Plan in areas such as the Metro, the public transport system, expansion of Transmilenio, building the backbone of Avenida Boyacá, rehabilitation of Avenida Caracas, besides the issuance of educational scholarships through the ‘Pilo Y Paga’ program, and extending the school day, backed by improved infrastructure. ”

Cardenas also said that the government is considering a public-private initiative to build a commuter train that will enhance the Integrated Public Transport System (SITP) of Bogotá to reach and serve outlying areas like Chia, Zipaquirá and Soacha.