Since American Airlines, Aeromexico, United Airlines and Spirit announced that they will delay their return to the country until April, local businessmen have given up hope that air connectivity will improve in the coming weeks.
Six international airlines operate in Nicaragua, but currently only Copa and Avianca are flying. The remaining four have postponed their return and according to their latest announcements, they would return until April.
After the South American country decided to suspend flights to and from Venezuela by Copa Airlines, the Civil Aeronautical Authority of Panama cancelled flights from Venezuela.
Panama has been forced to cancel existing flights to Venezuelan airlines, in response to the same measure taken by that country and until equal and reciprocal treatment is reached in the frequency of flights, as corresponds by the air commercial agreement, explained the Civil Aeronautical Authority (CAA).
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.
Beginning this week, Copa Airlines began operating the air route between the Panamanian capital and the city of Salta, in Argentina.
Representatives of the airline reported that Salta is the fifth destination that the company covers in the South American country, as they already have flights to Buenos Aires, Rosario, Cordoba and Mendoza.
Regarding the number of flights that Copa Airlines has between the Central American country and Argentina, Elcapitalfinanciero.com details that the airline operates a "... total of 51 weekly flights between the Hub of the Americas, in Panama City, and this South American country."
Avianca, United Airlines and Copa Airlines, signed a trade agreement that will allow them to agree flight routes in the American continent.
To ensure the commercial agreement reached on November 30th becomes effective, the three airlines plan to apply for regulatory approval and a complementary antitrust immunity (ATI) subsidy in the coming weeks from the U.S. Department of Transportation (DOT) and authorities in 19 Latin American countries.
The union of Nicaraguan businessmen has stated that starting from September, Copa Airlines will stop operating frequencies to Managua from San Jose, Costa Rica and Panama City.
According to the Superior Council of Private Enterprise in Nicaragua (Cosep), "...The affected flights are Managua - Panama, San José-Managua, Managua-San José and Panama-Managua, while the only route that the airline is keeping active is Managua-Guatemala, however, only Monday, Wednesday and Friday."
Terminal 2, whose opening is scheduled for next year, promises to improve conditions at the Panamanian airport, making it competitive with other hubs in Latin America.
The new Terminal 2, which is 92% complete, will have capacity to serve aircraft in 20 contact doors and 8 remote locations, taxiways, parking platform and aircraft circulation, adding up to pavement surface measuring more than 250,000 square meters.
The airlines claim there is a need to improve air traffic management at Tocumen airport, because "it is useless to have a new terminal if the planes cannot land."
Panama is at risk of losing competitiveness to other air hubs, such as Bogotá, if it does not take measures to reduce air congestion at Panama City's international airport, where 3 to 7 minutes delays are reported on flights, due to the fact that the number of air channels is not sufficient for the number of frequencies that operate there.
The airline will be investing $1.8 billion in the purchase of 15 Boeing 737 MAX 10 aircraft, and the first deliveries are planned for 2020.
According to Prensa.com, the contract was signed in Paris by the airline authorities and the manufacturer in Paris, within the framework of the international aeronautical fair of Le Bourget.
Dismissing the proposals by the Panamanian company Copa and that of Delta, Avianca Holdings has announced it will start the process of finalizing a strategic and commercial alliance with United Airlines.
Copa Airlines has announced that from 2018 it will transfer the servicing of its aircraft to the new 10 thousand square meter construction hangar is to be constructed in Tocumen.
The construction process, which requires an investment of $15 million, started a few days ago and will be completed in 2018.The airline plans to transfer all aircraft maintenance operation from the second half of 2018.
The Panamanian airline has presented a financial offer in cash and stock to acquire the second largest airline in the region after Latam Airlines.
The New York Times reported that the offer made by Copa Airlines consists of "... a merger that would value Avianca at more than $2 billion, or a 150 percent premium to its share price last week. [November 29]".
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.
Airlines claim there is a need to improve air traffic management in the terminal, because "there is no point having a new terminal if planes can not reach it."
Projections indicate that by 2020 Tocumen International Airport will handle 20 million passengers a year, but the competitive advantage gained from the enlarged terminal will deteriorate if problems in air traffic management that the airlines face today are not dealt with.
Copa Airlines has announced that starting in the second quarter it will begin operating a twice weekly route from Panama City to the City of Havana, in Cuba.
From a statement issued by Copa Airlines:
Panama City, January 29, 2016. Copa Airlines {NYSE: CPA} subsidiary of Copa Holdings, SA, and member of the global airline network Star Alliance, announced the addition of the new destination to the exciting city of Holguin in Cuba, which will begin operations in the second quarter 2016, with two weekly flights between Holguin and Panama City. With this new destination Copa Airlines is consolidating its regional leadership.