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

Wolverine Star Hugh Jackman Back in Costa Rica

Actor Hugh Jackman touched down in Costa Rica over the weekend, heading straight to the Pacific coast for a quiet vacation. The Australian star,...

Costa Rica’s Escalating Drug-Related Killings Grip Quepos and Parrita

Drug gangs fighting for control have left 95 people dead in Quepos and Parrita since January 2024, according to data from the Judicial Investigation...

Costa Rica Completes Route 32 Expansion for Faster Caribbean Travel

Drivers and businesses in Costa Rica now have access to a fully expanded Route 32, after authorities completed the long-awaited four-lane upgrade on December...

Latin America Doubles Success Shows the Best Path to Grand Slam Tennis

In men’s tennis, Latin America’s clearest route to the sport’s biggest stages isn’t always singles. It’s doubles. Over the past two seasons, the region...

Costa Rica’s Colón Strength in Central America Tests National Competitiveness

The Costa Rican colón has emerged as the strongest currency in Central America this year, posting gains that outpace its regional peers. Yet this...

Claudia Dobles Pushes to Reopen Closed Coast Guard Stations in Costa Rica

Claudia Dobles, the presidential candidate for Alianza Agenda Ciudadana, has put forward a plan to reopen two key National Coast Guard Service stations in...
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica