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

El Niño Causes Massive Coral Die-Off at Costa Rica’s Isla del Caño

Scientists report that the 2023-2024 El Niño event delivered a severe blow to coral reefs around Isla del Caño, one of Costa Rica's key...

Five Things to Know About Honduras Ahead of the Elections

A president sent out of the country in his pajamas, another locked up in a U.S. prison for drug trafficking, deep turquoise waters that...

Costa Rican Officials Clarify Leaked Air Safety Report as Preliminary and Erroneous

Costa Rican transport officials moved quickly to address a leaked report from the International Civil Aviation Organization (ICAO) that assigned our country a failing...

Fraud Claims Sow Tensions as Honduras Prepares to Elect President

Hondurans go to the polls on Sunday in a closely fought presidential election rife with fraud accusations that have sparked fears of violence in...

Australian Open Latin American Legacy Resonates in Costa Rica

Melbourne's hard courts come alive each January with the Australian Open, the year's opening Grand Slam. This two-week event draws the world's top tennis...

Fans Upset Over Last-Minute Changes to Bad Bunny’s Costa Rica Show Setup

Fans of Puerto Rican superstar Bad Bunny expressed frustration this week after organizers announced last-minute alterations to the stage setup for his upcoming concert...
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica