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

Costa Rica Investigates Damage to Thermal Wetland Near Cartago

Costa Rican environmental prosecutors are investigating alleged damage to a wetland near Cartago that contains natural hot springs, wildlife habitat and a network of...

Costa Rica Authorities Find Dock Inside Protected Río Tárcoles Area

Environmental authorities are preparing legal action after inspectors found a long walkway, dock and floating platform extending into a protected area along the Río...

Costa Rica Opens Probe Into Political Ties of Man Wanted by US DEA

Costa Rica's attorney general will investigate whether a naturalized Costa Rican detained for extradition to the United States had political ties or helped finance...

Panama Earthquake Aftershocks Could Shake Costa Rica for Weeks

Costa Rica could experience more tremors in the coming days and weeks as Panama continues to record aftershocks from yesterday's powerful magnitude 7.7 earthquake....

Pandora Closes All Five Stores in Costa Rica, Leaving Shoppers With Questions

Jewelry retailer Pandora has closed all five of its stores in Costa Rica, leaving customers wondering whether the popular Danish brand plans to reopen...

Iron Maiden Ends 10-Year Absence With 50th-Anniversary Show in Costa Rica

Iron Maiden returned to Costa Rica after 10 years, bringing its 50th-anniversary tour and a song never played here before.

Costa Rica Suspends Investigation Into Who Ordered Roberto Samcam’s Murder

Costa Rica’s prosecutor’s office has suspended its investigation into who ordered the 2025 killing of retired Nicaraguan military officer Roberto Samcam, an outspoken critic...

Costa Rica’s Pensionado Visa Ranks Fourth in Global Retirement Index

Costa Rica's Pensionado visa ranks fourth of 46 retirement programs worldwide on its $1,000 income rule and tax treatment. Paperwork is the weak spot.

Costa Rica Landfill Plan in Mora Faces New Land-Use Challenge

A decades-long fight over a proposed waste project in Picagres has flared again after the Mora municipal administration issued a new land-use certificate for...
Loading…

Latest News from Costa Rica

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