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

Tico Time and Why Life in Costa Rica Doesn’t Always Run on Schedule

I don't want to hear about Tico Time. Where did that expression even originate? It has been around for at least the 35 years...

Costa Rica Opens Legal Status Path for Thousands of Foreigners

Nearly 100 foreigners applied on the first day of a new Costa Rican immigration program designed to give legal status and work rights to...

Costa Rica Police Officer Jailed for Allegedly Helping Diablo Drug Network

The Fuerza Pública officer, identified as Ureña, was detained this week during raids in Sarapiquí and Pococí. Prosecutors are investigating his suspected relationship with...

What a Costa Rican migratory alert actually does

A judicial notice served on live television this week put an obscure piece of legal machinery in front of all of Costa Rica. Most...

Costa Rica Adds Booking.com, Expedia and ChatGPT to 13% VAT List

Costa Rica adds Booking.com, Expedia, ChatGPT and 17 more platforms to its 13% VAT list on September 8. Here is what changes on your card statement.

Guanacaste Bakes While the Caribbean Floods in Costa Rica’s Split August

August gave us two very different versions of Costa Rica’s rainy season, with unusually little rain falling around Liberia while parts of the Caribbean...

Argentine Hope Etcheverry Advances to US Open Second Week

Tomás Martín Etcheverry carried Argentina’s flag into the second week of the US Open on Friday, defeating countryman Mariano Navone 6-4, 6-4, 6-3 in...

Costa Rica’s Pacific Waters Reach Unusually High Temperatures

Ocean temperatures along Costa Rica’s Pacific coast are running unusually high, with researchers recording water up to 2°C (3.6°F) warmer than normal in some...

Costa Rica Route 1 Closing Overnight at Río Barranca

Route 1 will be shut at the Río Barranca bridge from 8 p.m. Saturday to 8 a.m. Sunday while crews pull three RECOPE fuel...
🌴 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