128Canopy Blog

A number of airlines have made the decision to cancel several of their flights to Costa Rica blaming the uncontrollable increase in fuel prices.

At least 5 airlines have either reduced their flights or completely cancelled them due to the sharp increase in expenses and fuel prices.  The most recent airline to have cancelled their flights to Costa Rica has been Air Comet.

Air Comet is a Spanish airline which offered three weekly flights from Madrid to San Jose since March 2007.  Air Comet publicly announced their flight suspension since last Sunday.  The airline plans to continue flights between the two countries again in 8 months.  Air Comet has announced that the flight suspension is also due to the renovation of the fleet.

They will be changing their Airbus 310’s for Airbus 340’s.  In addition to suspending their flights to Costa Rica, Air Comet has suspended flights to Santiago Chile.  Air Comet’s other offices in Latin America will continue normal operation.

Other airlines which have suspended flights to Costa Rica include First Choice from Great Britain.  First Choice offered a weekly flight from London to the Daniel Oduber International Airport in Liberia, Guanacaste.

Delta Airlines cancelled their direct flights from New York to San Jose leaving the route open to Continental Airlines which continues to fly from Newark to San Jose.  Martinair and ATA also cancelled their flights stating financial setbacks.

A recent increase in several operational areas within the Juan Santamaria International Airport has caused an outrage on behalf of the representatives of the Costa Rican Airline Association (ALA).

The Civil Aviation Technical Counsel (Cetac) has proposed at least seven strong increases within the airport’s operations.  This increase has been suggested by the National Comptroller’s Office due to the fact that airport fees have not been adjusted since 1994.

Cetac has presented rate increases which vary from a 69% increase to a 166% increase as well as a few price drops which don’t exceed the 7% decrease.  According to Cetac, the areas within the airport use which needs to have a fee increase is the air space infrastructure which requires a 166% increase.

Other increases include airplane parking fees which will have a 72% increase if the proposal is finally approved.  The use of bridges and transportation buses will have a 69% increase in its fees.

The Airline Association (ALA) has responded with a study they conducted regarding the fee increase.  ALA states that the percentages are absurd and that many of the areas which the new rates contemplate have not even been invested yet.  In addition, ALA states that Cetac did not even ask them or informed them of their intentions of increasing airport fees.

ALA has presented its study to the Public Services Regulatory Authority (Aresep) in order for them to intervene and make sure that the adjustments made are within the acceptable.

New Tourism Tax to be Charged on Airline Tickets

The Costa Rican tourism authorities have announced that they will implement a new method to collect tourism taxes which will replace the current one.

Authorities have decided to eliminate the 3% hotel tax and replace it by charging a $15 fee on all airplane tickets issued to Costa Rica.  The reason authorities have decided to eliminate this tax and charge the ticket fee is because a considerable amount of income has been lost since many tourists stayed at certain properties which were not required to pay taxes.

The Costa Rican Board of Tourism (ICT) showed that for the year 2006, an approximate $8 million were collected from the 3% hotel tax.  With the $15 ticket charge, the ICT expects to bring in an approximate $18 million per year.

The ICT is in need of fresh funds in order to efficiently promote Costa Rica as a tourist destination.  With this new tax collection, authorities will be able to collect funds without any problems.  In addition, new funds will allow for the development of new tourism projects and attractions.

The $15 airline ticket charge will be waived for transit passengers through Costa Rica.