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

Dollar Holds as Central Bank Warns US Rates Could Push It Higher

The dollar has eased from its early-October high, but Central Bank President Róger Madrigal warns a widening US rate gap could lift it again.

U.S. Embassy in Costa Rica Denies Visa Rumors Involving Rodrigo Chaves

Last night, the U.S. Embassy in Costa Rica rejected rumors that Washington had revoked visas belonging to serving government officials, following social media posts...

Canadian arrivals in Costa Rica jump 24% as travelers skip the US

Canadian visits to Costa Rica are up 24% this year, and long stays are driving millions in new spending.

Costa Rica Authorities Find Dock Inside Protected Río Tárcoles Area

Environmental authorities are preparing legal action after inspectors found a long walkway, dock and floating platform extending into a protected area along the Río...

Bryan Ruiz Debuts as Costa Rica Coach With Nations League Survival at Stake

Bryan Ruiz coaches Costa Rica for the first time tonight against Nicaragua, with Keylor Navas back and Nations League relegation at stake.

Costa Rica Faces Haiti at a Packed Saprissa With Bryan Ruiz’s Future Undecided

Costa Rica closes its Concacaf Nations League group stage tonight against Haiti, and a national team that went nearly a year without a win...

Costa Rica Opens Probe Into Political Ties of Man Wanted by US DEA

Costa Rica's attorney general will investigate whether a naturalized Costa Rican detained for extradition to the United States had political ties or helped finance...

Camera Traps Track Jaguars in Costa Rica’s Tortuguero

Camera traps installed along Costa Rica’s Caribbean coast have identified 11 individual jaguars in and around Tortuguero National Park, offering researchers a closer look...

Can environmentalism in Costa Rica learn lessons from the past?

Does the rise of populism in Costa Rica mean the end to the country’s green credentials? Perhaps, but it doesn’t have to be that...
Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel