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.
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.
Commercial flights entering the country will be required to obtain a fumigation certificate for the aircraft and passengers attempting to enter will be required to take a negative covid-19 test, carried out within a period of no more than 72 hours.
Because of the spread of covid-19, commercial flights in the country continue to be suspended; however, airlines anticipate that they may resume operations in early August.
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 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.
Since March 17th Avianca suspended all its flights to and from El Salvador, and United Airlines announced that as of April 1st it will no longer fly to Nicaragua.
In accordance with the directives of the government of El Salvador, all Avianca flights to and from that country are suspended from March 17 at midnight, the airline reported.
The closure of El Salvador's airport will last 15 days, which may be extended in accordance with the evolution of the pandemic, according to the document issued by Avianca.
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.
The airline Aliana announced the cancellation of flight routes from Guatemala to the United States and Tegucigalpa, and from the capital of El Salvador to destinations in North and South America.
Some routes from Bogota, Guatemala and San Salvador will be canceled consisting of fleet changes and focus on routes with higher demand, the airline said in a statement.
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.
The Mexican Volaris announced that next year will turn Costa Rica into its hub, from where it will open flights to South America and will put two or three more aircraft based in the Central American country.
The representatives of the low-cost airline reported that their plan for 2019 is to start direct flights to South America from Juan Santamaria International Airport and expand from four to seven the number of aircraft departing from Costa Rica.
The region has 20 international airports, of which 11 are located in Panama and Costa Rica, and the remaining nine are located in Guatemala, El Salvador, Honduras and Nicaragua.
According to the report "Transportation in Central America: importance in the regional economy", prepared by the Secretariat for Central American Economic Integration, Panama is the country in the region that has the broadest airport infrastructure, since it has seven international airports, followed by Costa Rica and Honduras with four air terminals each, El Salvador and Guatemala with two each, and finally Nicaragua with an international terminal.
In the last four years the number of international commercial flights that arrived in the country has grown by 26%, while the number of passengers went up 25% in the same period.
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.
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.
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