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

Ciudad Quesada–Aguas Zarcas Road Closed for Weeks After Collapse

Anyone traveling between Ciudad Quesada and Aguas Zarcas will need to use alternate routes for at least a month after heavy rain washed out...

Costa Rica Takes Two Top Honors in National Geographic UK Travel Awards

British travelers have placed Costa Rica at the top of two major travel categories, naming it their favorite destination for both adventure and responsible...

Costa Rica Flooding Hits More Than 400 Homes After Tropical Wave

More than 400 homes were flooded across Costa Rica over the weekend as Tropical Wave 47 brought heavy rain to several parts of the...

Costa Rica Raises Alert Around Rincón de la Vieja Volcano

Costa Rica has raised the alert level for communities around Rincón de la Vieja Volcano after scientists detected increased volcanic activity, marking a further...

Montezuma or Santa Teresa? Choosing Your Corner of Costa Rica’s Nicoya Peninsula

Every week someone asks us the same question. Should we be looking at Montezuma or Santa Teresa? It sounds like a choice between two...

Fernández Says “I Am the President” Amid Backlash Over Tovar Firing

President Laura Fernández has delivered her strongest defense yet of the sudden firing of Foreign Minister Manuel Tovar, warning her entire Cabinet that major...

Costa Rica Red Taxis Can Now Be Booked Through Uber

Uber users in Costa Rica can now request one of the country’s licensed red taxis directly through the app. Uber Taxi started yesterday with...

Costa Rica Mayor Asks Who Allowed Building at Protected Playa Blanca

Garabito's mayor questions how roads and homes were built at Playa Blanca, protected as a marine wetland since 1994.

Costa Rica Camera Traps Capture Margay, Pumas and River Otters

Over the last few years, I’ve worked my way up to the point where I have enough camera traps monitoring little patches of Costa...
Loading…

Latest News from Costa Rica

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