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

U.S. Demands Justice One Year After Roberto Samcam’s Killing in Costa Rica

The U.S. Bureau of Western Hemisphere Affairs marked the first anniversary of Roberto Samcam’s assassination in San José by calling for accountability in a...

On Father’s Day Costa Rica Quietly Rethinks What It Means to Be a Dad

Costa Rica celebrates Father's Day today and anyone who spent August here will notice the difference immediately: the third Sunday of June arrives with...

Costa Rica Fuel Price Relief Could Take Time After Global Oil Drop

The recent fall in global oil prices has raised hopes that gasoline and diesel costs may ease after months of pressure tied to conflict...

Costa Rica Residency Delays in 2026: What Foreign Residents Should Expect

For many foreigners planning to live in Costa Rica, the residency process in 2026 has required one essential quality: patience. Applicants are currently facing delays...

Messi Breaks World Cup Scoring Record as Argentina Advances

For much of us here in Latin America, watching Lionel Messi at a World Cup has become a familiar ritual. On Monday, the Argentine...

Panama moves 29 high risk inmates to Coiba prompting UNESCO warning

Panama’s Defensoría del Pueblo stated that reopening a penitentiary facility on Coiba Island could compromise the area’s status as a UNESCO World Heritage site....

Costa Rica’s Route 32 Faces Lane Closures Into Early July

Drivers using Route 32, the main highway between San José and the Caribbean port city of Limón, should plan for lane closures on the...

Uruguay Let Lead Slip in Costly World Cup Draw With Cape Verde

Uruguay had Sunday’s World Cup game right where it wanted it, then let it slip away. The South American side drew 2-2 with Cape...

Costa Rica Researchers Study Rare Meat-Eating Vulture Bees

In the forests of Sarapiquí, Costa Rica, some bees are drawn to something far different from flowers. They visit decaying animal remains, feed on...
🌴 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