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.
As of February 3rd, Avianca will begin operating a new frequency between the capital of El Salvador and the U.S. city.
The new frequency will leave El Salvador at 6:55 p.m. and arrive in Los Angeles at 10:35 p.m. The flight from the U.S. city will leave at 00:30 hours and will arrive in the Central American country at 7:19 hours.
Starting in August, Avianca plans to start operating new direct routes between the Salvadoran capital and the cities of Boston and Orlando.
The airline reported that both flights will have four frequencies per week and will depart from Monsenor Óscar Arnulfo Romero and Galdámez International Airport. The flight to Orlando will be inaugurated on August 1 and the route to Boston will begin on August 17.
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."
The Superintendency of Competition could set minimum and maximum transient prices for air tickets, in the national interest or because of public need.
The initiative a proposal by the Frente Farabundo Martí para la Liberación Nacional (FMLN) to the Salvadoran Congress to amendment Article 22 of the Civil Aviation Act so that the Superintendency of Competition (SC) can set those rates.
Avianca has announced the opening of two new routes to connect San Pedro Sula and Tegucigalpa to New Jersey, with a stop in El Salvador, four times a week.
Although in November it will only operate four times a week, from December 1 there will be daily flights.
The Colombian airline Avianca has announced that as of September 17 it will run four flights a week between San Salvador and Chicago, United States.
Prensa.com reports: "The flight will be operated with an Airbus A319 aircraft, with capacity for 120 passengers, including 12 business class seats and 108 in tourist class, the company said."
The flights from El Salvador to Chicago will be on Tuesdays, Thursdays, Saturdays and Sundays at 8:35 am, while those from the U.S. will will be on the same days but at 4:15 p.m.
The airline has announced that from September 60 additional flights will come to the country, which will mean an increase of 9% in passenger arrivals.
According to Avianca's commercial director in the region, Danilo Sepulveda, El Salvador receives 1.3 million passengers every year, therefore with the arrival of these new frequencies, the number will increase by 120,000 users in one year. "We are targeting variable segments and in part the business management philosophy is to look for something integrated into different segments," he said.
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.
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