The constant resurgence of covid-19, the closure of international markets and the loss of consumer confidence, postpone the beginning of the recovery of the air industry, a process that is predicted to be long in the context of the new business reality.
According to the International Air Transport Association (IATA), in this context of business and economic crisis in a large number of countries at the global level, there is no evidence of strong growth in global demand for cargo and its progress continues to be an extraordinary challenge for airlines.
The installation of anti-bacterial gel stations, cameras and arches for temperature control are some of the works that are pending at La Aurora Airport, so that it can operate commercial flights when the borders open.
Due to the propagation of covid-19, the Guatemalan government prohibited the arrival and departure of commercial flights in the country.
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.
The lack of definition of the date when Guatemala's borders will be reopened causes uncertainty among local entrepreneurs in the sector, which is going through one of the most severe crises due to the covid-19 outbreak.
As a result of the spread of the virus, the Guatemalan authorities suspended commercial flights and closed the borders to tourists. In addition, tourist sites were ordered to be closed and the movement of people between departments restricted.
The Colombian-born airline, which operates in all Central American countries, voluntarily filed for bankruptcy in the United States following the company's economic losses due to the spread of covid-19 globally.
This process was necessary due to the unpredictable impact of the covid-19 pandemic, which has caused a 90% decrease in global passenger traffic and is expected to reduce industry revenues worldwide by US$314 billion, according to the International Air Transport Association (IATA), the company reported.
The Guatemalan government signed an agreement so that after a mission from the U.S. Federal Aviation Agency conducts an audit, a roadmap will be drawn up for the Central American country to be certified as a category 1.
The plans are for the U.S. Federal Aviation Agency (FAA) to evaluate the country's legislation, regulation, organization, personnel training, guides and manuals, certification and licensing, surveillance and sanctions, and aviation environment. After this inspection, a proposal will be formulated for the accreditation of Guatemala.
With the reform approved by Congress, the airlines will avoid paying VAT and income tax twice.
The reforms that will come into effect in January 2021 were approved by Decree 2-2020, which received the endorsement of the Legislative on January 20.
The airline Jet Blue announced that as of June 1, 2020 it will begin operating one direct flight a day between the Guatemalan capital and the U.S. city.
"... JetBlue will offer service to and from Guatemala, with daily non-stop service between Guatemala City's La Aurora International Airport (GUA) and New York (JFK). You can book those flights starting today," the airline said on Jan. 17.
From December 1, 2019, Mundo Maya Volando will begin operating flights between the country's capital and the cities of Quetzaltenango and Huehuetenango.
According to the schedules announced by the airline, flights between the three cities of the country will be available seven days a week and will be operated on three aircraft.
Juan Pablo Nieto, deputy director general of the Guatemalan Institute of Tourism (Inguat), told Prensalibre.com that "... the increase in the number of seats and itineraries to these two destinations requires investment by businessmen and boost the economy and tourism in these departments. Only in the Guatemala route to Huehuetenango the company registered a growth in terms of number of people above 500% and 300% in relation to the number of flights, i.e. that the business of air transport on that route is highly profitable and now with the combination surely there will be new opportunities and hopefully grow the numbers of flights."
In Guatemala, Congress is discussing a bill that seeks to increase the arrival of flights to the country through tax incentives for airlines, which would be coupled with the elimination of improper tax charges.
On August 14, 2019, the President of the Legislative Branch, Álvaro Arzú Escobar, presented to Congress initiative 5585, which has the support of the International Air Transport Association (IATA), the Latin American and Caribbean Air Transport Association (ALTA) and the Guatemalan Association of Air Lines (AGLA). See full bill.
The Ministry of Education of Guatemala tenders the air transport service for school sports delegations, which will participate in different international sports activities.
Guatemala Government Purchase 10477233:
"The round trip air transportation services are required for the School Sports Delegation of Guatemala, which will participate in the "Central American Student Sports Games of CODICADER Primary Level, 2019 Inclusive", to be held in the City of San José, Costa Rica, from October 15 to 21, 2019 and for the games evaluation meeting, from October 21 to 24, 2019.
Starting in May, TAG Airlines plans to start operating two daily frequencies between the capitals of Guatemala and Honduras.
TAG Airlines executives announced that the round trip fare for the flight connecting Guatemala's La Aurora Airport with Toncontín in Tegucigalpa will be $299.
Prensalibre.com explains that for the new flight "... there will be two daily flights, one departing at 9 a.m.
Honduras, Guatemala and El Salvador signed the Regulations for the Facilitation of Air and Airport Operations, which will allow some of the flights operating between the three countries to be considered domestic flights.
The Honduran Minister of Investment, Luis Mata, explained that "... this makes it interesting for local and regional airlines to be able to use their planes on regional flights now considered as domestic or local flights with preferential rates."
The company sold its stake in the Central American airlines Sansa in Costa Rica and La Costeña in Nicaragua, both dedicated to the operation of domestic flights.
Avianca clarified that Avianca's international routes served from Juan Santamaría International Airport in Costa Rica and Augusto Sandino International Airport in Managua, Nicaragua, will continue to operate normally.