IL Postcard

COPA Says Panama is the Natural Choice for a Latin American Hub

Date: 08/03/2006

Dear Panama First Alert Reader,

Thanks to a booming economy, things are happening very fast in Panama. The nation's premier airline, COPA, is growing and taking advantage of an influx of wealth to increase coverage. If you are planning to visit Panama (or anywhere else in Central or South America, for that matter), chances are COPA has the most frequent and convenient service to your destination of choice.

It is probable that the Panama Canal Expansion project and plans for a new refinery will add to Panama's wealth and boost the economy and travel even further. And the economy isn't just good in Panama; neighboring countries-such as Colombia and Costa Rica-are also enjoying good financial times and, as a result, providing more business for COPA.

In 2005, economic growth in Panama increased by an impressive 6.4%, and Latin American and Caribbean economies are expected by some analysts to grow as much as 4.6% this year. Data overall has been overwhelmingly positive and people all over the world are taking notice.

The L.A. Times cites statistics showing just how much travel in and to Latin America has increased in the last couple of years. Most notably, major U.S. carriers reported traffic in and out of the Latin America and Caribbean region had increased by a whopping 29% last year.

The airline is doing so well that they are adding eight gates at their Tocumen International Airport hub in Panama City. COPA already has enough planes on confirmed order to nearly double its already sizable fleet, and even more new destinations will be offered soon.

Although it is not a point of pride for the airline, increased U.S. security following the events of September 11, 2001, did increase COPA's business, as more Latin American travelers prefer to schedule layovers at non-U.S. airports rather than hassle with obtaining a U.S. visa.

COPA's alliance with Continental Airlines was also a big business booster, as the airlines now share booking codes and allow their travelers to accumulate miles on one simple "OnePass" account.

Another good sign is COPA's performance on the New York Stock Exchange. According to the Los Angeles Times, COPA's stock traded on a 51% gain last year, and the airline saw growth in all major areas, including revenue, total passengers, and capacity. In fact, Continental Airlines ended up selling some of its COPA stock to fund a $75 million boost for its pension program.

If you would like to read more about COPA, check out its many services or maybe even book a flight, we think you'll like COPA's English-language site.

One caveat: it seems the cost of airline tickets hasn't come down much from last year. It may take a bit more time and growth before increased traffic forces prices down somewhat, and COPA admits that it doesn't particularly cater to your average bargain hunter. Rather, its main target is the harried business traveler who is willing to pay a bit more to save time.

It seems safe to say-based on regional statistics for 2004, 2005, and the first quarter of 2006-that travel to the region will continue to increase. It is thus likely that prices will go down eventually. You can help make this happen. How? Hop on a plane…in fact, come down this October for the absolute ultimate in events…namely, our Ultimate Event, scheduled to take place at the stunning Intercontinental Playa Bonita Resort and Spa. The conference is already set for October 18-21, but we strongly suggest you give yourself some extra time in Panama after the conference…why? Click here for the lowdown.

Best Regards and hope to see you soon,

Brandon Clogston
International Living, Panama
For answers to your questions about Panama, e-mail Panama@InternationalLiving.com.
P.S. For a more in-depth look at Panama's economy and current events, check out our next issue of Panama Insider, International Living's online publication for those who are interested in living or investing in Panama. Find out how to subscribe to Panama Insider here.
*Source: Kris Kraul, L.A. Times, July 8, 2006 "Airline Makes Panama a Hub Of Latin American Air Travel"..