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Low-cost airline will cut cost of regional management

Monday, September 12, 2016

Running a regional business should become easier as of next year, with the expected launch by Volaris Costa Rica of of low-cost flights among major cities in Cental America.

Costs would go down for managers and technical personnel to visit operations in various countries, with fares which will be as much as 50 per cent lower than those currently charged, according to Volaris representatives.

Colombia’s Avianca and Panama-based Copa have for several years dominated Central American air travel.

Return economy-class flights between pairs of Central American cities – none of which are much more than an hour – are often in the range of $500.

To keep costs down, Volaris offers single-class services with few frills, including few connections to other airlines.

However, many regional managers, for whom international connections tend to be of limited interest, may appreciate a combination of competitive prices and convenient flights.

The new airline, based in San José, is a subsidiary of a Mexican company, owner of Volaris, which operates in 77 destinations in Mexico and the United States.

Concesionaria Vuela Compañía de Aviación last year earned $193 million on revenue of $992 million.

Its subsidiary is in the final stages of certification in Costa Rica, and of negotiation of landing rights in Panama, Nicaragua, El Salvador and Guatemala.