SKY Airline (Chile) (H2, Santiago de Chile) will gradually transition to a Low Cost Carrier business model over the next twelve months airline CEO Holger Paulmann has told the El Mercurio newspaper.

Founded in 2002 as a full-service carrier, Sky Airline operates a near homogenous fleet of thirteen A319-100s and three A320-200s on a network that is predominantly inclined towards the domestic market but which also covers Bolivia, Argentina, Peru, and Brazil. It is Chile's second largest operator after LAN Airlines (Santiago de Chile).

Speaking in the interview, Paulmann said the move is necessary to ensure the carrier's long-term sustainability given recent dramatic fluctuations in the cost of fuel as well as foreign currency exchange rates.

In terms of aircraft operations, Paulmann said that routes with poor loads will be removed from November onwards while overall aircraft utilization rates will be increased from the current eight, to over ten hours per day.

Sky will also reduce its on-board meal options before switching to a pay-service from early next year. It is also reviewing its baggage charge policy alongside that of seat pre-selection.

Sky has also begun offering one-way flights that are cheaper than return tickets, he added.

Once Sky's transition is complete, it will be Chile's first and only homegrown LCC to date.