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

Costa Rica Health Workers Plan Nationwide Strike Over Unpaid Salaries

Health workers across Costa Rica are preparing for a nationwide strike tomorrow as problems with a new payroll system continue to leave some employees...

Costa Rica Independence Torch Travels Toward San José and Cartago

Costa Rica’s Independence Torch is set to reach San José and Cartago tonight after coming from Nicaragua yesterday for the annual student relay marking...

Building in Costa Rica? Understanding Your Construction Contract Options

The final word in legal matters is in the hands of the Supreme Court. In Costa Rica the Supreme Court is composed of four...

What the Red Sea Oil Halt Could Mean for Costa Rica

Saudi Arabia has not exported crude oil through its Red Sea ports since Saturday, after drone attacks damaged its East-West pipeline, according to maritime...

Costa Rica’s New High-Security Prison for Organized Crime to Be Ready in 15 Days

Costa Rica’s new high-security prison for organized crime is expected to be handed over to the government by the end of September, with authorities...

Video of Orcas Spotted Near Costa Rica’s Cocos Island in Rare Encounter

A group of orcas has been spotted near Costa Rica’s Cocos Island, giving park rangers a rare look at one of the ocean’s most...

Why Experts Say Costa Rica Is the Best Wellness Trip After 50

Costa Rica keeps turning up at the top of lists aimed at older travelers and retirees. The latest comes from Travel + Leisure, which...

Central America Drought Kills Cattle and Threatens Food Supply

Animals are dropping dead amid the worst drought in living memory for many Central Americans, who are dealing with the unforgiving effects of the...

Scientists Name First New Wild Cat Species in Over 100 Years

A small spotted wild cat from the cloud forests of Bolivia has been formally described as a new species. Scientists say it is the...
🌴 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