RootsAir From Costa Rica, joined Feb 2005, 4180 posts, RR: 44 Posted (7 years 12 months 4 days 2 hours ago) and read 2172 times:
Well I thought that TACA used some LCC policy with so called low fares.
However, I went to their website and searched for fares in advance (i.e October ) which is also not a peak season I'd say Here are some prices
SJO-MGA-SJO 408 $ tax incl$
SJO-GUA-SJO 206 $ tax incl
SAL-GUA-SAL 258 $
according to me, with those short distances I would think prices could be lower. Thus would it be possible for any Loe cost central american carrier to begin. Since I live in Geneva,Switz. i'm not that much aware of the situation as could be some of my fellow Central American A.netters.
Regards
A man without the knowledge of his past history,culture and origins is like a tree without roots
N77014 From , joined Dec 1969, posts, RR: Reply 1, posted (7 years 12 months 4 days 1 hour ago) and read 2128 times:
A good amount of traffic in central america is not local, but O/D from USA gateways. There is not a lot of disposable income. It is not common for say, Nicaraguans to take off and visit El Salvador or Guatemala. Also, many central american airports leave much to be desired. And the local population tends to carry quite a bit of baggage and freight.
All these are recipes for a good bus service, but not a LoCo airline.
Just curious... what dates in October? I went looking (Oct. 1 - Oct. 8) and found this:
SJO-MGA-SJO $129 plus tx $173.45
SJO-GUA-SJO $162 plus tx $206.10 (same fare you quoted)
SAL-GUA-SAL $129 plus tx $175.77
As for your original question, I'm not an aviation expert, but I'll try...
Several airlines have tried to enter the Central American market with an LCC model (Tikal Jets and the infamous SolAir/Aerohonduras come to mind). However, they have had to pull out due to low yields, which don't cover up for their operation costs (which, btw, are waaaay high in C.A.). For example, Tikal Jets Quits Service To SAP (by HR001 Jun 16 2005 in Civil Aviation)
Another complaint is how difficult it is for these new airlines to be allowed to start operations; they have to fulfill too many gov't requirements, and of course, there is always bureaucracy involved, as you can read here.
If anyone has further information please correct me!
Being a pioneer in any field is not by itself a guarantee of continued success - Pan Am, anyone?
Chiguire From Venezuela, joined Sep 2004, 2003 posts, RR: 18 Reply 3, posted (7 years 12 months 4 days ago) and read 2119 times:
Quoting Carmenlu15 (Reply 2): Another complaint is how difficult it is for these new airlines to be allowed to start operations; they have to fulfill too many gov't requirements, and of course, there is always bureaucracy involved
And exactly this would turn out to be the main problem:
The only successfull LCCs need more than one basis. This means you need to have at least three AOCs. And this is almost impossible....
Luisde8cd From Venezuela, joined Aug 2004, 2517 posts, RR: 34 Reply 4, posted (7 years 12 months 4 days ago) and read 2123 times:
Those high prices are the main reason why Venezuela's Aeropostal is planning to start a new subsidary arline based in SJO called Aeropostal: Alas de CentroAm�rica. The fleet will consist of former Aeropostal DC9s (-30 and -50) which are being slowly replaced by MD80s. They plan to fly between SJO and CCS to feed their South American flights and their Air Europa codeshare to MAD.
There's also AeroHonduras which is 50% owned by Aeropostal, I think they are flying from TGU to Managua with also a former Aeropostal DC9.
Aeropostal saw a big opportunity to make business in an area dominated by Taca and Copa, I wish them the best.
HR001 From Honduras, joined Nov 2004, 303 posts, RR: 3 Reply 5, posted (7 years 12 months 4 days ago) and read 2108 times:
Quoting Luisde8cd (Reply 4): There's also AeroHonduras which is 50% owned by Aeropostal, I think they are flying from TGU to Managua with also a former Aeropostal DC9.
The DC-9 never arrived, the pilots were checked on the DC-9 but then told to take a hike. don´t think this will project will take to the skies. Taca an CM are two formidable contenders with brand new planes and with more coming!!
Aerohonduras learned their lesson and only flies between MIA and Honduras.
FlyAUA From Austria, joined May 2005, 4604 posts, RR: 57 Reply 6, posted (7 years 12 months 4 days ago) and read 2087 times:
Quoting RootsAir (Thread starter): Thus would it be possible for any Loe cost central american carrier to begin.
Of course it's possible. If here in Europe LCCs manage to be so very successful with all the problems and complications that come alongside national boundaries, I am sure a LCC in Central USA can do the same
I've just never heard of the airline you have mentioned
Chiguire From Venezuela, joined Sep 2004, 2003 posts, RR: 18 Reply 7, posted (7 years 12 months 4 days ago) and read 2080 times:
Quoting FlyAUA (Reply 6): Of course it's possible. If here in Europe LCCs manage to be so very successful with all the problems and complications that come alongside national boundaries, I am sure a LCC in Central USA can do the same
Latinamerica is not Europe or US. Things here are much more complicated for airlines !
Runway23 From US Minor Outlying Islands, joined Jan 2005, 2043 posts, RR: 39 Reply 8, posted (7 years 12 months 4 days ago) and read 2077 times:
The first complicated step in establishing any airline in such a country is to get the rights (eg. routes, setting the company up, etc...). A government may not see air travel as a priority or may simply be content of how the current market is doing.
The prices posted may not be that significant. If the airline has those prices then the demand exists or they are flying between a hub city and another where higher prices on a point-to-point simply means blocking a seat from a customer likely to fly further.
AA767400 From United States of America, joined Jan 2001, 2271 posts, RR: 25 Reply 10, posted (7 years 12 months 3 days 22 hours ago) and read 2042 times:
Well Roots no LCC will be able to take you from Geneva to San Jose so keep dreaming.
Remind me not to browse A.net while drinking my coffee...
Now back to formality... This thread provided some criteria to consider an airline a true LCC:
- Only offering P2P-flights, like FR and U2? No, TA focus mostly on hub-to-hub operations (SAL/SJO/LIM)
- No inclusive meals on-board? Well, they do have buy on board... but then again, some "legacy" carriers are following suit (ex. UA)
- Only serving secondary, uncongested airports? No, in the U.S. they fly to main airports (LAX, JFK, IAD to mention some).
- Only having one type of plane? Leaving domestic operations aside, I recall the A319/320/321 (coming soon) could be considered as one type of plane due to their similarities, so this could be a point.
- Offering easy walk-up one-way fares? No, while it is true that they simplified their fare structure, it's still mostly roundtrip fares.
I would add class differentiation (economy/business) and a FF program, both of them offered by TA.
And my conclusion: Low fares? Maybe. Low cost? Definitely not.
Being a pioneer in any field is not by itself a guarantee of continued success - Pan Am, anyone?
TACAA320 From , joined Dec 1969, posts, RR: Reply 18, posted (7 years 12 months 3 days 12 hours ago) and read 1916 times:
"(if this LCC does what all others do)"[reply 12]
"I know nothing about this airline, nor have I ever heard of it before (as I stated in my post above)"[reply 17 referring to post 12]
With al due respect, you're... well... confussed...
RootsAir From Costa Rica, joined Feb 2005, 4180 posts, RR: 44 Reply 20, posted (7 years 12 months 3 days 10 hours ago) and read 1896 times:
Quoting Carmenlu15 (Reply 16): - No inclusive meals on-board? Well, they do have buy on board... but then again, some "legacy" carriers are following suit (ex. UA)
This is service degradation when you consider how much you pay for some tickets
Quoting Carmenlu15 (Reply 16): - Only serving secondary, uncongested airports? No, in the U.S. they fly to main airports (LAX, JFK, IAD to mention some).
Good excellent point !
Quoting Carmenlu15 (Reply 16): Only having one type of plane? Leaving domestic operations aside, I recall the A319/320/321 (coming soon) could be considered as one type of plane due to their similarities, so this could be a point.
too bad they've got such a boring fleet. Then again thank goodness its not only A 320's
A man without the knowledge of his past history,culture and origins is like a tree without roots
HR001 From Honduras, joined Nov 2004, 303 posts, RR: 3 Reply 23, posted (7 years 12 months 2 days 22 hours ago) and read 1848 times:
Taca has been doing what most airlines have been forced to do cut some service amenities to lower costs not because they wanted to do so. Fares are substantially lower in Central America not as low as many wish buy as Carmenlu stated cost are high in the region. Taca Is not a LCC. It is a successfull Airline in very hard times, operating in a high cost region !!!
MGA From Nicaragua, joined Mar 2005, 726 posts, RR: 4 Reply 24, posted (7 years 12 months 2 days 21 hours ago) and read 1827 times:
Quoting Carmenlu15 (Reply 22): Oh, come on... how can you not like this beauty?
Phisically its a doll!
Quoting HR001 (Reply 23): Taca Is not a LCC. It is a successfull Airline in very hard times, operating in a high cost region !!!
That one kind of kills me.... Central America has one of the cheapest labor prices in the world. Thats why AEROMAN exists and B6, HP etc outsource their MX. Why would TA´s Costs be so great?
TA has cut every corner. Let me tell you, as an Horizonte member, i´m not happy with them anymore. I wastreated like shit in my last flight. There is no more ¨real airline¨ benefit from them for business or frequent flyers, Especially now that they want to get rid of ejecutiva.
MGA
Que viva el guaro, el dinero y los aviones!!!
25 Carmenlu15: IMHO, it's because fuel is going up, and airport fees are quite high (about a year ago, they were even considering moving the SJO hub elsewhere due t
26 Chiguire: They want to get rid of their business class ? I am surprised as well ! How can the leading airline in Centralamerica (besides Mexico) do that ? The
27 HR001: Landing fees and fuel in some countries are extremely high !!! I agree with you that service has declined a lot!! but is still is not a LCC
28 MGA: I know. They would practically give up every penny form business flyers. TA is currently trying out some new seats by a new company in Ejecutiva. The
29 Carmenlu15: That has to be the most insane idea they have ever come up with I asked my know-it-all best friend the RES instructor, and he says he knows nothing a
30 SoAmSky: Are oil prices in Central America higher than anywhere else in the world? Give me a break! The hike on oil prices is taken by all the airlines everywh
31 Avek00: No clue on whether an intra-LatAm LCC would work, but methinks a B6/FL operation to Central America based out of their hubs/focus cities could prove m
32 MGA: I pay 2.40 American Dollars in L.A. for Super. In Managua I pay 3.05 for the same gas. Besides that, I have no Idea of the costs. I can easaliy state
33 HR001: In Honduras $ 3.15 a Gallon . Avjet is slapped with additional taxes.
34 Carmenlu15: That was more or less my salary... as a supervisor. Talk about underpaid airline employees!
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Remind me not to browse A.net while drinking my coffee... 
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