More Competition in Regional Aviation Market

With the entry of two competitors focusing on the business of low-cost fares, the airline market in Central America is preparing for a potential price war.

Friday, December 19, 2014

Panama has become the starting point for tourists looking to travel to the rest of Central America, where new airlines want to capitalize on a market which so far has been driven Copa Airlines and Avianca. Air Panama and VivaColombia are looking to compete in the market offering low prices, but limiting their offer to other services such as luggage. reports that "... Air Panama and VivaColombia say that they starting competing with Copa Airlines the price of tickets to Medellin and Colombia has dropped by 40%. "

Representatives of Copa Airlines, added that "... We are used to competition in other markets, so the current scenario is not new ground. In the airline industry it is normal to start with promotions, however, ticket prices will stabilize. "

More on this topic

Low Cost Flights Come to Central America

December 2016

The beginning of operations of several regional airlines in the moderately priced sector is auspicious for trade, and in particular tourism.


The launch in San Jose this week of the ultra low cost airline Volaris Costa Rica, with a presence in Mexico, the United States and Central America, who will begin operating next month with a San Jose, Costa Rica -Guatemala City (Guatemala) route, confirms how activated the business of commercial aviation in Central America has become.

Welcome Competition and Low Prices

November 2016

In five years the airline market in Central America has transformed from being a market dominated by two major airlines, to one with new entrants, lower prices and greater connectivity.

The arrival of so called "low cost" airlines to the region has resulted in a progressive reduction in the prices of tickets to fly between Central American countries. Between 2011 and 2014 the average cost without taxes for travelling between Costa Rica and El Salvador ranged from between $400 and $500, while in 2015 it costs $391.

More Low Cost Flights From Colombia to Panama

June 2015

VivaColombia will be adding a new daily air frequency between Medellin and Howard international air terminal.

The airline, which began operations on August 1 in 2012, announced that the new low-cost flight will fly the route Panama-Medellin-Panama and Panama-Bogota-Panama.

Lower prices due to Airlines Competition

July 2014

The arrival of new competitors with frequencies between Colombia and Central America has generated a reduction in rates, favoring customers.

The opening of routes from Medellin and Bogota to Panama, by the airlines AirPanama and VivaColombia with fares "... up to 70% less than those offered by the subsidiary of Copa Holdings" is already generating benefits to travelers.

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