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.
Guatemalan authorities announced they plan to carry out refurbishment work at an air terminal located in the department of Escuintla, so that these facilities can function as a cargo airport.
Officials of the Executive informed that the project to adapt the airfield that is located south of Guatemala City, is in the final design phase and will be built in three stages.
In El Salvador, the contract for the financing, design, construction and operation of the San Oscar Arnulfo Romero y Galdámez International Airport Cargo Terminal is tendered under the Public-Private Partnership format.
The project contemplates two phases of development: Phase 1 consists of financing, design, expansion, construction, equipment, improvement of maintenance and operation of the existing Cargo Terminal.
The Guatemalan government endorsed the modernization of La Aurora International Airport, which costs about $117 million, through a public-private partnership.
After the consulting firm Deloitte Tetra Tech was hired to prepare feasibility studies, with the aim of establishing contract models that could be applied to modernize the Guatemalan air terminal, it was recommended that a public-private partnership (PPP) is the most efficient way.
In Guatemala, the maintenance of the boarding docks at La Aurora International Airport is being tendered.
Guatemala Government Purchase 10609652:
"Maintenance service of boarding docks 3A, 4, 5A, 6, 9, 10, 11, 12, and 13 of AILA:
The CIMCTIANDA brand boarding docks (9 units) must be maintained based on the report on the status of the docks which will be provided during the technical visit.
Aeroman opened in El Salvador its sixth hangar, which has an area of two thousand square meters and capacity to maintain 14 narrow cabin aircraft simultaneously.
The new hangar, which began construction in March 2018 and whose investment in infrastructure amounted to $20 million, is located on land adjacent to the Oscar Arnulfo Romero International Airport.
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."
After having carried out the adaptation work on its infrastructure, it reopened the San José Port aerodrome, in Escuintla, which will be used initially for private flights.
The expectation of the authorities is that in addition to private flights that can already be operated in the air terminal located in the Pacific, commercial flights will be scheduled in the future.
A public-private partnership would be the most efficient option for modernizing Guatemala's La Aurora International Airport, which urgently requires a strong investment in infrastructure.
The consulting firm Deloitte Tetra Tech was hired to prepare feasibility studies, with the aim of establishing contract models that could be applied to modernize the Guatemalan air terminal.
Charges, taxes, high fuel prices and other costs at airport terminals can represent close to 30% of the value of air tickets in countries in the region.
Airlines that operate in the Latin American region face an uncompetitive market, since in 2018 these companies are projected to earn $2.95 per passenger, a figure much lower than the $15.67 estimated in North America or $7.58 in Europe, according to representatives of the International Air Transport Association (IATA).
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.
A search has begun for investors interested in participating in the tender to award the operation of La Aurora International Airport in concession, for a term of 15 to 20 years.
During the next months the Guatemalan government intends to bring into operation the aerodromes of Puerto San José, Cobán, Huehuetenango and Esquipulas.
Guatemalan authorities reported that the first project that will be launched will be the renovation of the San José Port aerodrome, in the department of Escuintla, which will require an approximate investment of $272 thousand.
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.