Air travel between Panama and Spain has had a limited, but long history. In fact, they’ve been flying between Panama City and Madrid since 1971, although currently, they’re the only airline that flies non-stop Panama to Spain these days. While that may change, as Copa continues its expansion and foreign airlines continue to increase their Panama routes, Iberia wants to keep it’s position at the top. Earlier this month, the Spanish carrier announced that not only would they be increasing flights, but also that they would open their Latin American regional offices in Panama City.
This is a big move for a European airline, as Copa has been on a tear since 2011, adding multiple non-stops a year, and making Panama a verified transportation hub for inter-American air travel. Now, with Iberia stepping up its presence, they may give Copa a run for their money in the European market, getting an early head start of a growing demand.
Why choose Panama? Why now?
Timing is everything when it comes to Iberia’s reasons for expanding their Panama presence this year. With commercial traffic demand at an all time high from Spain’s biggest cities, and many Panamanian construction projects managed by Spanish firms, the need for more flights is crucial. There’s also a big need for managing other regional flights from Spain, and Panama has the perfect location and economic climate to house such a headquarters. Iberia also wants to get a head start on the competition, as many predict both Copa and KLM to expand European routes, and Spain is very high on their list.
Panama also has a great economic relationship with Spain, and has signed both trade pacts and tourism incentives in recent years with the European nation. Now, with the Canal nearing completion, it is expected that both business and leisure travel between the two countries will drastically increase.
More Panama flights. More cities.
The announcement of a new regional office in Panama City wasn’t the only news from Iberia this month. According to the head of the ATP, or Panamanian Tourism Authority, Iberia will have multiple daily flights between Panama City and Madrid starting this year. They will also start connecting more flights in other Central American and Caribbean destinations through Panama, which will have a positive effect on Panama’s economy, especially its international airport.
Iberia also has plans to expand Spain flights to include non-stops to Barcelona. Barcelona is at the center of many of the Spanish construction groups helping to build public works and private properties in Panama, including the new Metro (Subway), and parts of the Canal. Barcelona is also a hot market for tourism, and should open up a new economic opportunity with Panama’s middle and upper classes fitting their target demographic. Iberia has yet to release a solid date on when these new Barcelona flights would go into effect, however they plan on testing the market sooner than later, and hope that the Madrid routes can teach them something about that.
Another silver lining to Iberia’s Panama HQ announcement is that it will help build relationships with local and regional businesses and make strategic partnerships that should result in lower fares, and expanded regional flights from Panama. This is specifically important for people who regularly fly between LatAm hubs such as Mexico City, Bogota, Lima, and Buenos Aires.
The future looks good for Iberia in Panama, and this is great news for the local travel industry. It’ll be interesting to see how far Iberia is willing to go to compete in an ever-growing market. Only time will tell.
