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

Global Leaders Arrive in Costa Rica for Presidential Transition

Costa Rica will host delegations from around the world Friday as Laura Fernández is sworn in as the country’s next president, turning the May...

Costa Rica Central Bank Warns Dollar Decline Could Reverse

The president of the Central Bank of Costa Rica, Róger Madrigal, warned that the recent weakness of the U.S. dollar against the colón could...

Costa Rica Drivers Face Delays Near Tarcoles Bridge

Drivers heading between Costa Rica’s Central Valley and the Central Pacific should prepare for delays this week as the Tárcoles bridge on Route 34...

Costa Rica Researchers Convert Waste Into Food

Costa Rican researchers are turning to fungi as a possible answer to one of our country’s most urgent environmental problems: what to do with...

Costa Rica Begins New Era as Laura Fernández Takes Office

Laura Fernández will be sworn in today as our new president, opening a four-year term shaped by promises of tougher security policies, closer alignment...

Starlink Expands Business Internet Access in Rural Costa Rica

Liberty Empresas has been authorized to resell Starlink’s high-speed satellite internet in Costa Rica, opening a new option for businesses, schools and organizations operating...
Loading…

Latest News from Costa Rica

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