Categories: Aviation

IATA Says Central America is Struggling with Aviation Development

Central America appears to be struggling with the development of the aviation industry, preventing some nations from accessing the economic and social benefits the industry can bring.

According to new insights released by the International Air Transport Association (IATA), the industry is not developing at an equal pace in all countries in the region.

MORE Airlines & Airports

“Some countries in the region are having greater success in unlocking aviation’s benefits to support economic and social development,” Peter Cerda, IATA’s regional vice president, The Americas said during a speech at Aviation Day Central America, which was organized by IATA, the Airline Association of Costa Rica (ALA), and the Latin American and Caribbean Air Transport Association (ALTA).

Cerda urged governments across Central America to work with the industry to maximize the benefits that aviation can bring.

“Aviation supports over 859,000 jobs and makes a $17.9 billion contribution in gross value added to the combined GDP of the seven Central American countries,” Cerda added.

In Panama, for example, 14 percent of GDP and 238,000 jobs are supported by air transport and foreign arrivals, while in Belize, aviation supports fully 33 percent of the country’s GDP, according to IATA.

By contrast, in Guatemala, just one percent of GDP is supported by air transport, while in Honduras, the figure is a mere three percent.

To help drive the benefits of aviation connectivity to new heights, IATA suggested countries should take a variety of steps including aligning their aviation regulatory framework with global best practices; ensure competitive costs and efficient administration in airports through open communication with the industry; and ensure transparency and participation of the industry in infrastructure planning and development across Central America.

IATA said that unfortunately, there are too many examples where this formula is not currently being followed.

In Guatemala, for example, airlines face potential tax penalties due to the tax authority’s non-recognition of the use of globally-accepted cost allocation formulas to calculate the taxable amount corresponding to the airlines’ operations in Guatemala.

According to new insights released by the International Air Transport Association (IATA), the industry is not developing at an equal pace in all countries in the Central American region.

IATA and other stakeholders are working with the Guatemalan government and the industry to resolve this issue and ensure Guatemala follows globally-accepted best practices and principles related to taxation of aviation.

“Even in countries where governments understand the importance of aviation as a catalyst for growth, there are opportunities to do more,” IATA said.

In Panama, a court awarded more than $1 million in damages in a cargo claim brought against an airline. This far exceeds the liability limits for cargo claims contained within the Montreal Convention, to which Panama has fully acceded. IATA has intervened in the case, which is currently on appeal.

Countries also need to prepare to accommodate an additional 421 million passengers across the Latin American region by 2036.

“Within Central America, San Jose (Costa Rica) and Tegucigalpa (Honduras), need new airports, while Panama Tocumen requires a third runway as well as much-needed airspace modernization that the government is undertaking. In El Salvador, the terminal at San Salvador also requires expansion,” Cerda said.

“Owing to its geographic location, Central America is well-positioned to increase the economic gains that aviation can deliver. The recipe for success is not complicated but it requires all stakeholders working together in partnership. We see differing approaches to how governments approach aviation. This presents an opportunity to learn from the true success stories in the region,” said Cerda.

This post was published by our news partner: TravelPulse.com | Article Source |
TJS News

TravelPulse.com, part of the travAlliancemedia network of products, is the leading resource for the latest travel news, offers, and videos. Since 2002, TravelPulse.com has been delivering industry news, dynamic video content and important supplier and destination information that have allowed hundreds of thousands of travel agents to succeed. Now, with dedicated consumer content, TravelPulse is once again revolutionizing the way that travel content is consumed.

Recent Posts

Southern Living Idea House 2026 abre sus puertas en Fredericksburg, Texas

La revista Southern Living invita al público a descubrir su Idea House 2026, una espectacular…

2 days ago

Air Canada, United Airlines Expand Transborder Routes for Summer 2027

Air Canada announced Friday that it will launch new transborder routes in partnership with United…

4 days ago

JetBlue’s BlueFirst Is Now on Sale

JetBlue announced Thursday that bookings are open for its new domestic first-class service. BlueFirst is…

6 days ago

Selma Blair Arrested After Attacking Flight Attendants and Trying to Open Plane Door Midflight

Actress Selma Blair was arrested on Sunday after a violent incident aboard a Delta Air…

1 week ago

Sailing the Arctic with Atlas Ocean Voyages

  What is it really like to cruise to the Arctic? Join travel expert and…

1 week ago

Off The List: What to SKIP and Where TO GO

**Are some of the world's most popular travel destinations actually overrated?** Before you book your…

1 week ago