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Costa Rican Legislator Proposes Bill to Lower Cost of Airfare Within Central America

Eli Feinzaig, head of the PLP party, presented a bill of law that aims to to promote affordable flights between Costa Rica and other Central American countries. The objective is to offer airfares that do not exceed $126 round trip, approximately ¢65,200 based on the current exchange rate.

The plan seeks to establish a special tax regime and lower tariffs specifically for low-cost tickets within the Central American region, including Belize and Panama, or to and from the Dominican Republic.

“With the possibility of quick transfers of one hour or less within the region, at a very accessible price, we would have the equivalent of a Central American bullet train,” explained Eli Feinzaig.

The legislator underscored that the project was based on a study conducted by the World Bank, which identified that flights in the Central American region are much more expensive per kilometer than in other areas of Latin America, largely due to the combination of taxes and airport fees being a significant component of the cost.

Feinzaig mentioned that in Costa Rica, these taxes and fees currently amount to $58.38 (approximately ¢30,000 colones). The PLP legislator mentioned that the World Bank recommended reducing said costs to “to increase passenger demand and stimulate the market.”

“If approved, the total sum of taxes and airport fees would be a maximum of $23, provided that they are flights within the region, the other country maintains similarly low fees, and the ticket cost does not exceed $40 one-way or $80 round trip. With this, we can achieve the goal of round-trip flights for less than $126. This is essential to promote the growth of SMEs, who will now have a low-cost access route to all Central American markets,” added Feinzaig.

According to the lawmaker, discussions have already been held with airlines and airport operators, and they have shown their willingness to collaborate and offer competitive fares that meet the requirements outlined in the proposal.

Meanwhile, the World Bank has presented the proposal to countries in the region, as they must be willing to adjust their regulations to make the project a reality.

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