Restructuring of airlines, preference for direct flights, modifications in the routes operated and the use of smaller aircraft are some of the changes expected in the regional air market in the context of the new business normality.
Air traffic has virtually disappeared in the last three months, as governments in Central America have decided to close borders and suspend commercial flights to and from the region's airports as a result of the covid-19 outbreak.
An announced has been made of a definitive deprogramming of the weekly flight that operated between Buenos Aires and Caracas, citing operational reasons.
Already in August the airline operating under the Argentine flag had announced the suspension of the tickets sales for this flight.Now the company has announced the deprogramming of its weekly flight in definitive form.
The strike organized by the colombian operations´pilots has forced the airline to suspend the sale of tickets for flights between Bogota and Guatemala City until October 5.
Prensalibre.com reports that "...For the rest of the destinations operating from Guatemala, passengers will be able to purchase tickets without any problems, as these flights are not affected by the strike reported Avianca's North American, Central American & Caribbean Regional Communications department."
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.
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.
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.
Flights from San Jose to New York, Los Angeles, Havana, Quito and Guayaquil will now stop in El Salvador or Colombia.
Avianca announced the cancellation of five direct flights from San Jose, as part of a restructuring program that the company is undertaking. Flights to Los Angeles, New York, Havana, Quito and Guayaquil, will leave the country but will now stop in El Salvador or Colombia.
From 23rd to 25th of February representatives from airlines, airports and the tourism industry will be reviewing air services in the region.
More than 400 aviation professionals, representatives from 70 airlines, 25 authorities for tourism and airports will meet from 23rd to 25th February in El Salvador in the seventh edition of Routes Americas, an event aimed at developing new routes and expanding connectivity .
The new airline route now includes a stopover in San Salvador.
Starting January 16th the airline will be rearranging its operations from San Jose, Costa Rica to Miami, Florida with flights from Monday to Sunday with stops in San Salvador, El Salvador.
The abandonment of several routes by Avianca leaves, apparently, niches that could be used by new players.
An article in Elfinancierocr.com reports that "If all goes as planned, 2014 could see the start of operations by three new Central American airlines: Air Ticos, Ticas Airlines and Vuelos Económicos Centroamericanos (VECA). The new companies want to attend to the international passenger routes amid an industry dominated by giants such as Avianca, Copa Airlines, Delta and 20 other international airlines."
El Salvador's Vuelos Económicos Centroamericanos and Costa Rica's Ticos Air and Ticas Airlines are in various stages of preparation and registration to offer flights in the region.
Vuelos Económicos Centroamericanos (CASI) reported that it has leased two Airbus aircraft and will invest nearly $100 million in order to start operations in March 2014. The company is interested in creating a market in the low-cost segment and not competing with airlines such as Avianca and Copa, said Edgar Hasbun, CEO of the company.
In terms of how modern the infrastructure for air transport is, Panama leads the field, followed distantly by Costa Rica.
"None of the airports in Central America comes close to knocking Tocumen off its number one position in the ranking by Skytrax, nor the ranking by the World Economic Forum. The latter measures the quality of infrastructure for air travel in the country , where Panama climbed from 38th place in 2007 to last year reach the prestigious position of sixth place," reported Elsalvador.com.
The infrastructure in most airports in Central America can not cover the increase in the number of air passengers transiting in the region.
In the region, traffic has increased by almost 80% over the last ten years going from 95 million to 170 million passengers. "Today, 30% of Latin American flights take off or land at congested airports, which constitutes one of the main difficulties in the development of the airline industry," noted an article in Eleconomista.net.
The airline said that from July 1 they will start operating a direct daily flight between Los Angeles and San Jose, Costa Rica.
This new route will complement the two daily services currently offered by Delta from San Jose to Atlanta and will be operated by a Boeing 757-200 with capacity for 180 passengers, with 24 seats in first class and 156 in economy class.