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Low Cost Flights Come to Central America

The beginning of operations of several regional airlines in the moderately priced sector is auspicious for trade, and in particular tourism.

Thursday, December 1, 2016

The launch in San Jose this week of the ultra low cost airline Volaris Costa Rica, with a presence in Mexico, the United States and Central America, who will begin operating next month with a San Jose, Costa Rica -Guatemala City (Guatemala) route, confirms how activated the business of commercial aviation in Central America has become.

The proposal put forward by Volaris', whose representatives said they hope in the coming months to continue adding routes that will provide greater connectivity within the region so that everyone can fly, comes at a time when the low-cost airline Wingo, a subsidiary of Copa Holding, starts from today flights to 16 destinations and 17 routes in Latin America from Bogota, including to Panama, competing with other low cost airlines such as VivaColombia and Air Panama.

Wingo's new operation also includes flying from Panama City to San Jose, Costa Rica, and from there to Guatemala City.

The presence of this option, unimaginable for years, brings another perspective to the market, and has resulted in, according VivaColombia, a reduction in rates of tickets of up to 80% and market growth averaged at 25% on flights between Panama and Colombia.

Beyond the benefits in reduced costs, the tragic plane crash this week in Colombia of an aircraft belonging to the Bolivian airline LaMia, forces us to pay attention to the cost structures of airlines who offer cheap tickets, so that we can ensure that their services are as safe as the larger sized airlines.



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Growing Demand for Low-Cost Flights in Panama

During the past year 224 thousand passengers traveled from Panama to other countries using low-cost airlines, registering a 5% increase compared to 2015.

Tuesday, April 25, 2017

Although the growth rate is relatively low, it represents a transformation in the Central American air market. Spirit, VivaColombia and Wingo are three of the low-cost airlines that have increased their presence in the market, competing with the airlines that traditionally shared the region's market. 

Elcapitalfinanciero.com reports that " ...According to statistics provided by the Civil Aviation Authority (AAC), 223,839 passengers traveled from Panama to cities in other countries using low-cost airlines in 2016. If you compare this figure with the 212,982 passengers that were transported by these airlines in 2015, there is a 5% increase.  

"... Specifically, during the last two years, 436,821 people traveled to other countries using low-cost airlines operating in Panama. They are Spirit Airlines, a US company, the Colombian company VivaColombia and the newly formed Wingo, a subsidiary of Copa Holding."



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