No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveEconomic Turbulence Grounds Flights

Economic Turbulence Grounds Flights

Always a volatile industry to begin with, recent economic turbulence has local airlines more topsy-turvy than ever.

Last week, Central American carrier TACA announced it would lay off an unspecified number of workers and cut back on flights due to the economic downturn. Meanwhile, however, U.S.-based Continental Airlines announced it would add more flights to Costa Rica from hubs in Houston and Newark, New Jersey.

“Mainly, it’s based on consumer demand,” said Garlos Granados, sales manager at Continental Airlines Costa Rica.

While the number of tourists flying into Costa Rica “has picked up a little” over the last month, Continental’s growth plans should not be taken as a sign of an industry wide rebound, according to Alexi Huntley, Sales and Marketing Director at Nature Air.

“The fact of the matter,” Huntley said, “is that the overall market is shrinking.”

Huntley said Nature Air had seen about a 10 percent decrease in passengers in January compared to the previous year, causing the company to reduce the number of flights offered and lay off about 3 percent of its work force.

TACA officials estimated that the company had seen a drop in passengers between 5 and 10 percent in the same period, with tourism traffic in Guanacaste being the hardest hit. However, communications coordinator Sofia Valverde said the company’s 1,300 employees in Costa Rica would not be facing job cuts, for now.

The layoff “at the moment only affects workers in Nicaragua, Guatemala and Honduras,” Valverde said. “It will not affect TACA Costa Rica or (TACA affiliate) SANSA, for now.”

Last week, DanielOduberAirport in Liberia announced that tourist arrivals had increased 3.5 percent in 2008 to 420,000, up from 405,000 in 2007. But Huntley said arrivals for the Liberia airport, a better indicator than JuanSantamaríaInternationalAirport near San José of tourist numbers because it caters almost exclusively to vacationers, were down 9 percent in January 2009 compared to the same month last year.

With the deep discounts being offered, however, airline officials expressed optimism that tourists would respond.

“The market is really price sensitive,”  said SANSA business manager Cesar Solís, citing the success of the airline’s new Web site and cheap fares.

“I think it’ll get better,” agreed Huntley. “People are going to want to live their lives again. Ironically, there’s never been a better time to travel.”

 

Trending Now

What the Caribbean Green Alert Means for Your Weekend Plans

If you are going to the Caribbean coast or the Northern Zone over the next few days, plan for rain and give yourself more...

Fernández Tours Flooded Limón as Pressure Builds for an Emergency Declaration

Fernández toured flooded Limón on Monday as a legislator pressed for a formal emergency declaration for the Caribbean.

Costa Rica Wildlife Study Records 79 Species at Reserva Conchal

A year-long wildlife study at Reserva Conchal in Guanacaste documented 79 species of mammals, birds and reptiles, nearly double the 40 recorded during the...

The Panama Canal Opened 112 Years Ago Today

Twelve years of digging, an estimated 27,500 deaths and roughly $375 million ended quietly on the morning of August 15, 1914, when a single...

Missing Hiker Found Alive After Four Days in Costa Rica’s Chirripó National Park

A 58-year-old Costa Rican hiker who had been missing for four days inside Chirripó National Park was found alive this morning, ending an extensive...

Route 32 shut again with a reopening decision due this morning

Route 32 between the Central Valley and Limón remained closed early Tuesday pending a MOPT inspection. What the detours look like and why the slopes keep failing.

Novak Djokovic Reveals Health Issue After Cincinnati Open Loss

Novak Djokovic’s return to competition lasted just one match Saturday as the 24-time Grand Slam champion struggled physically in the Cincinnati heat before suffering...

Latin American Players Make Early Push at Cincinnati Open

Latin American players made an immediate impact as the Cincinnati Open main draw began Thursday, with Argentina’s Mariano Navone and Thiago Agustín Tirante advancing...

Costa Rica Looks to Ukraine for Drone Technology in Security Fight

Ukrainian President Volodymyr Zelensky and Costa Rican President Laura Fernández exchanged invitations for official visits during a phone call yesterday, as the two leaders...
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel