As of March 28th, the Colombian airline will begin to reactivate flight routes connecting Central American countries with North American and South American nations.
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.
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 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."
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 introductory tickets will be priced at $529.
Laprensa.hn reports: "In the case of San Pedro Sula, the departure schedule will be on Monday, Wednesday, Friday and Sunday at 6:55 am and arrivals will be at 8:42 pm. At Tegucigalpa, the departures will be at 6:40 am and arrivals at 8:40 pm, in all cases, on the same day. "
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.
The airlines have agreed to implement code-shared flights.
Taca-Avianca and Aeromexico have agreed to operate a code share which will benefit the Colombia-Mexico market from the first half of 2012, and for the second half of the year, Taca and Aeromexico will code-share, and this will include routes in the Central American-Mexico market as well as South American-Mexico routes, thus giving passengers a greater choice of service, more frequent flights and more travel alternatives in the region.
Net income for the group has grown by over 100%, reaching the figure of $101.5 million in 2011, $51.5 million more than in 2010.
Avianca-TACA, one of the largest airlines in Latin America, reported a growth of 17.8 percent on its passenger traffic in 2011, thanks to the strong performance of its domestic operations in Colombia, Ecuador and Peru, reported Reuters and Prensa.com.
The airline will inaugurate a new direct connection from El Salvador and add more scheduled flights from Costa Rica and Lima.
As of August 6, Taca Airlines will operate a direct flight between Havana and El Salvador, three times a week, using a 120-passenger A319 aircraft.
Danilo Correa, the AviancaTaca Regional Sales Director for Mexico, Central America and the Caribbean, said: "This new flight will strengthen tourism and trade relations between the two countries and allows connection options for other major markets in the region. It therefore meets the needs of our customers. In this context we are pleased to offer this new flight. "
The demand generated by the region's rapid economic growth should give ample room for air transport companies to grow.
The Latin American aeronautical industry was one of the few to record growth during the financial and economic crisis. The market, shaken by constantly growing demand, has seen big changes this year, first Colombian Avianca's purchase of Taca and later the creation of a new giant carrier with the merger of Brazil's TAM with Chilean LAN.