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

Honduran Police Fire Tear Gas at Protesting Students

Honduran riot police fired tear gas Monday at students protesting a proposed cut to the budget of the National Autonomous University of Honduras. About...

Ortega says Trump has a mental breakdown over war in the Middle East

Nicaraguan President Daniel Ortega said Monday that U.S. President Donald Trump is suffering from a mental breakdown after launching, alongside Israel, the war in...

Panama Takes Custody of Flight 901 Bombing Attack Suspect

Panama took custody Monday of the main suspect in the 1994 bombing of Alas Chiricanas Flight 901, the deadliest terrorist attack in the country’s...

Costa Rica’s Liberia Airport Posts Best Quarter in History

Guanacaste’s main international airport in Liberia just posted the strongest first quarter in its history, another sign that Costa Rica’s Pacific gateway is carrying...

Costa Rica Authorities Train to Better Handle Rescued and Seized Wildlife

Humane World for Animals Costa Rica has partnered with Costa Rica's National Environmental Security Commission to deliver a series of training workshops for government...

Is It Viable to Apply a Tax on the Ultra-Rich in Latin America?

Applying the "Zucman tax," a levy on large fortunes, in seven Latin American countries would make it possible to raise $24 billion a year...

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel