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Central America Travel

Central America Vacations & Tourism, Central America Hotels, Central America Attractions - Yahoo! Travel Primary Navigation Overview | Hotels | Things to do | Restaurants | Map | Flights | Cars | Deals | FareChase Central America: Search Travel Travel > Guides > Central America Email this page Print Central America Vacations, Tourism, Hotels View larger map of Central America Top Cities in Central America San Jose Panama City San Salvador Belize City San Pedro Antigua Guatemala Tegucigalpa Tamarindo Caye Caulker Puerto Quepos Managua Guatemala City Roatan San Ignacio Placencia Granada Countries in Central America Belize Costa Rica El Salvador Guatemala Honduras Nicaragua Panama Popular Central America Cities Belize Belize City San Pedro Caye Caulker San Ignacio Placencia Costa Rica San Jose Tamarindo Puerto Quepos Puntarenas Limon El Salvador San Salvador San Luis Talpa San Miguel San Vicente Santa Ana Nicaragua Managua Granada Leon Montelimar Rivas Guatemala Antigua Guatemala Guatemala City Panajachel Chichicastenango Tikal Natl Park Panama Panama City David Boquete Taboga Island Colon Honduras Tegucigalpa Roatan Tela San Pedro Sula La Ceiba Related Information Popular Attractions in Central America Antigua Guatemala Volcn Arenal Spirogyra Butterfly Garden Mercado Central Ruinas de Ujarrs Parque Nacional Volcn Pos Zoolgico La Aurora Rain Forest Aerial Tram Day Trip Mapa en Relieve Parque Nacional Popular Hotels in Central America Quinta Real Guatemala Casa Santo Domingo Hilton Princess San Salvador Hotel Colonial Grand Tikal Futura Hotel Marriott Guatemala City Bougainvillea Hotel Four Seasons Resort Costa Rica Belize Yacht Club Barcelo Montelimar Beach Popular Cities in Central America San Jose Panama City San Salvador Belize City San Pedro Antigua Guatemala Tegucigalpa Tamarindo Caye Caulker Puerto Quepos Yahoo! FareChase: Search dozens of websites, find a cheap airfare Help get your favorite places listed on Yahoo! Travel: suggest a hotel or suggest an attraction .

Air Travel May Double

Bloomberg.com: Latin America Updated: New York: Dec 28 17:46 London: Dec 28 22:46 Tokyo: Dec 29 07:46 US AU BZ FP GR HK IM JP LN SM IND : Regions Top Worldwide Regions Asia Australia & New Zealand Canada Europe Germany Japan Latin America U.K. U.S. Markets Economy/Politics Commentary Sports Culture Bloomberg RSS RESOURCES: Bloomberg TV Bloomberg Radio Markets Latin America E-Mail This Story Printer-Friendly Format Venezuelan Economy Grew 9.4 Percent in 2005, Fueled by Government Spending Codelco Union Workers Delay Strike at Chile Copper Mines for Wage Talks Brazilian Central Bank Expects 4 Percent Growth in 2006, Faster Inflation Mexican Air Travel May Double in 3 Years on Discounts (Update2) Dec. 23 (Bloomberg) -- Mexico is preparing for domestic airtravel to double in as few as three years, predicting newdiscount airlines such as Interjet will pull 20 millionpassengers off the bus, the country's aviation chief said. Interjet, the first low-cost carrier to begin service fromthe Mexico City area, introduced fares this month that beatpremium bus travel. Almost 40 million people annually travel 400kilometers or more on buses equipped with televisions, airconditioning, and washrooms between cities served by airports,said Gilberto Lopez Meyer, Mexico's civil aviation director. ``We can double the number of domestic air passengers ifhalf these people begin flying,'' Lopez Meyer said in aninterview in Mexico City on Dec. 20. The first discount fares introduced in Mexico areencouraging, he said. Mexico City-based Interjet, one of fivestartup projects, began flying four routes on Dec. 5 with pricesthat are as little as a quarter of those charged by the nation'slargest airlines, Mexicana and Aeromexico. They can be cheaper than the bus, too. Traveling to thebeach resort of Cancun from Mexico City on a luxury bus run byAutobuses ADO costs 1,284 pesos ($120) and takes up to 23.5hours. Interjet's fares to Cancun from the Toluca airport, 69kilometers from downtown Mexico City, start at 1,205 pesos,including taxes. The flight is two hours long. A round-trip ticket to Guadalaraja from Toluca can be ascheap as 1,144 pesos on Interjet, compared with 5,145 pesoscharged by Mexicana or Aeromexico. ``I hope these prices are here to stay,'' Lopez Meyer said.``If the discount fares are on average 50 percent cheaper thanthe legacy carriers, we'll have achieved our goal.'' Temporary Subsidies Avolar Lineas Aereas SA began flying from the northern cityof Tijuana to four towns in September. Another two carriersprobably will start operations by June, Lopez Meyer said. One issponsored by Mexican billionaires Carlos Slim and EmilioAzcarraga and the other is backed by Brazil's Gol Lineas AereasInteligentes SA. Mexico is Latin America's second-largest aviation marketafter Brazil, with 20 million passengers a year. To help lower fares, the Mexican government is expandingairport capacity and giving the startup carriers temporarysubsidies on services such as fuel delivery that reduceoperating costs by about 10 percent, Lopez Meyer said.Passengers get 50 percent off on airport tax when flying fromsecondary airports. Competitor Reaction Interjet, owned by the son and grandson of former MexicanPresident Miguel Aleman, can break even in a year by maintainingthe current fare structure so long as the planes fly 65 percentfull, Chief Executive Officer Jose Luis Garza said in aninterview in Mexico City. The carrier has a five-class faresystem with a 50-peso difference between them, he said. The Alemans spent $230 million to buy seven Airbus SAS'sA320 from insolvent Italian airline Volare Group SpA and putdown $60 million in equity capital to start Interjet, Garzasaid. Interjet placed firm orders for 10 new Airbus planes andhas options to buy another 10, which would demand investments of$1.2 billion, he said. Interjet has no debt. Reacting to increasing competition, Mexicana and Aeromexicointroduced promotional fares and expanded service to Toluca.Government-owned Aeromexico began flying to the industrial cityof Monterrey from Toluca on Dec. 14 for as little as 822 pesos.At Interjet, fares to Monterrey start at 745 pesos. ``I can make money at this price, but they can't,'' saidGarza, who served as chief financial officer of Aeromexicobetween 1988 and 1990. Airline Sale Discount airlines reduce investor interest in theprivatization auction for Mexicana and Aeromexico last month.The government sold just Mexicana and rejected bids forAeromexico, saying they were too low. Grupo Posadas SA, Mexico'slargest hotel chain, bought Mexicana for $165.5 million plusassumption of $1.27 billion in debt. Shares of Cintra SA, the holding company for Mexicana andAeromexico, tumbled 20 percent the day after the bids wereplaced Nov. 21 and another 18 percent in the three daysfollowing the auction results were announced Nov. 30. Thegovernment plans to put Aeromexico on the block again in early2006. ``We couldn't artificially halt the entry of the low-costairlines because of the sale of Cintra,'' Lopez Meyer said. ``Ifthere's interest in new carriers and all the requirements aremet, we have to issue a license by law.'' To contact the reporter on this story:Adriana Arai at aarai1@bloomberg.net Last Updated: December 23, 2005 13:57 EST ©2005 Bloomberg L.P. All rights reserved. Terms of Service Privacy Policy Trademarks Site Map Help Feedback About Bloomberg Log In/Register Advertising ??????