Panama and Costa Rica to emerge as aviation hubs

Subject

Aviation in Central America.

Significance

Central America is becoming increasingly important as a Latin American aviation hub, seeing a recent wave of alliances and expansions. However, much of this activity is concentrated in just two of the region's seven countries -- Costa Rica and Panama.

Impacts

• Copa and Avianca will be the dominant airlines in Central America for the foreseeable future.
• There may be some consolidation among recent entrants to Costa Rica’s domestic market.
• Avianca will focus increasingly on its core activities, seeking to divert from small domestic airlines in Central America.