Low-cost airlines bring efficiency

The arrival of low-cost airlines will make regional business more efficient, with fares as low as $200 for a round trip between any pair of Central American cities.

From a hub in San José, Costa Rica, Mexico-based Volaris last December started a connection with Guatemala, and expects in the next few months to add Managua and Mexico City.

Panama’s Copa Airlines launched Wingo, a low-cost affiliate, with flights between San José and Panama.

Colombia-based Avianca, a conventional carrier, has for its part been offering seat sales to deal with the new competition.

Avianca has more connections within Central America than any other operator.

Cutrate airfares should help develop scale economies, in a region with slow roads and no rail connection.

Until recently, fares for flights within Central America were among the highest in the world.