BRIEF
Project Description:
RECAC, with funding from the Inter-American Development Bank (IDB), required a comprehensive diagnosis of competition conditions in air passenger transport in Central America and the Dominican Republic. The objective was to identify structural, regulatory and market barriers affecting competition, connectivity and efficiency, and to define a public policy framework applicable at the national level with regional coherence.
PROJECT
Rigorous analysis for fairer and more efficient air competition in Central America.
Title
Diagnosis of the conditions of competition in passenger air transport in the Central American region and proposal for a national public policy derived from the diagnosis.
Customer
Central American Network of National Competition Authorities (RECAC).
Weather
2020 – 2022
GPA methodology applied:
GPA conducted a structured economic and regulatory analysis in Costa Rica, El Salvador, Honduras, Nicaragua, Panama and the Dominican Republic. The diagnosis included the analysis of regulatory frameworks, air service agreements and competition legislation, along with detailed studies of supply, demand, market structure, route concentration, alliances and pricing strategies.
Based on this analysis, GPA assessed market power dynamics and their impact on tariffs and consumer welfare, and developed strategic recommendations and a harmonized policy framework with roadmaps adaptable to each national authority.
Results of the
project:
The project provided a sound analytical basis for competition policy in passenger air transport, strengthening regulatory capacity and regional coordination. RECAC and national authorities now have a clear, evidence-based public policy proposal to foster fair competition, improve market efficiency and support sustainable air connectivity.
Global reach, connecting the world:
