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Why no flag carrier for Puerto Rico?


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#1
Avelo

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Recently I was wondering why Puerto Rico lacks a national airline. Despite the uptick in passenger numbers, SJU still remains underutilized--especially since the airport has more than enough leftover capacity for its own international airline. SJU handled 8.7 million passengers in 2015 and reached a peak of roughly 10 million passengers in 2005, but has the capacity for approximately 20 million annual passengers, if not more. What do you think, should Puerto Rico have its own flag carrier? (I established my own Puerto Rican flag carrier in World S4B right here: http://ae31.airline-...s4b&player=138)



#2
keanseeley

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Simply because there's a big airport doesn't mean that there's big demand. Puerto Rico certainly isn't a business destination with the ongoing recession in the territory. For US-based vacation traffic, JetBlue, American, Southwest, and United already cover most major US cities.

 

International traffic is limited for the same reason domestic isn't: border control. Traveling from an EU country to an EU-governed island territory is more convenient than traveling to a comparable US island territory. Norwegian Long Haul has started seasonal services from Europe, but that's about it for now.

 

For the time being, any growth in SJU's will probably come from mild JetBlue expansion. Even American shut down their hub in SJU during 2013 due to unprofitability. 



#3
Avelo

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Simply because there's a big airport doesn't mean that there's big demand. Puerto Rico certainly isn't a business destination with the ongoing recession in the territory. For US-based vacation traffic, JetBlue, American, Southwest, and United already cover most major US cities.

International traffic is limited for the same reason domestic isn't: border control. Traveling from an EU country to an EU-governed island territory is more convenient than traveling to a comparable US island territory. Norwegian Long Haul has started seasonal services from Europe, but that's about it for now.

For the time being, any growth in SJU's will probably come from mild JetBlue expansion. Even American shut down their hub in SJU during 2013 due to unprofitability.

In my opinion, a flag carrier would certainly help promote tourism on the island.

#4
Jsieczkar

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It does have one Seaborne Airlines, it basically is just jumps around the caribbean.



#5
Avelo

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It does have one Seaborne Airlines, it basically is just jumps around the caribbean.

Seaborne Airlines isn't really considered a flag carrier, just an airline doing inter-island services from Puerto Rico. Also, in World S4B I envisioned transforming SJU from a primarily regional destination into a major global hub with my airline, and I believe this kind of strategy would provide a major economic driving force that would be beneficial for Puerto Rico.

#6
Jsieczkar

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The US does not have any true "Flag Carrier" in any of its areas, so unless PR wants independence then it will not have one.  Seaborne has a PR territorial flag on the side and based there so that is as close as it will get.



#7
Avelo

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The US does not have any true "Flag Carrier" in any of its areas, so unless PR wants independence then it will not have one. Seaborne has a PR territorial flag on the side and based there so that is as close as it will get.

Hong Kong had Cathay Pacific as its flag carrier ever since it was a British territory, so being a territory doesn't necessarily mean that place shouldn't have a flag carrier. Despite still being a U.S. commonwealth, Puerto Rico today has its own constitution as well as a unique form of government. Though Puerto Ricans can travel to the U.S. mainland without a passport or visa, they aren't considered to be American citizens. Also keep in mind that even though Puerto Rico considers both English and Spanish as official languages, the overwhelming majority of locals living on the island only speak Spanish.

#8
Jsieczkar

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Hong Kong had Cathay Pacific as its flag carrier ever since it was a British territory, so being a territory doesn't necessarily mean that place shouldn't have a flag carrier. Despite still being a U.S. commonwealth, Puerto Rico today has its own constitution as well as a unique form of government. Though Puerto Ricans can travel to the U.S. mainland without a passport or visa, they aren't considered to be American citizens. Also keep in mind that even though Puerto Rico considers both English and Spanish as official languages, the overwhelming majority of locals living on the island only speak Spanish.

 

They are US citizens; https://www.law.corn...ode/text/8/1402

 

British Laws are very diffrent then the US laws on this topic and on colonial relations as it has a flag carrier still, while US law prohibits the establishment of one.

 

PR has limited self governing rights and its own constitution (as does every state) but at the end of the day it officially an unincorporated territory of the US and could have its government removed at anytime via repealing the Puerto Rico Federal Relations Act of 1950.  The term commonwealth is a meaningless in US law (Massachusetts and Kentucky are also Commonwealths).



#9
Avelo

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They are US citizens; https://www.law.corn...ode/text/8/1402

British Laws are very diffrent then the US laws on this topic and on colonial relations as it has a flag carrier still, while US law prohibits the establishment of one.

PR has limited self governing rights and its own constitution (as does every state) but at the end of the day it officially an unincorporated territory of the US and could have its government removed at anytime via repealing the Puerto Rico Federal Relations Act of 1950. The term commonwealth is a meaningless in US law (Massachusetts and Kentucky are also Commonwealths).

Even if Puerto Rico shouldn't (legally) have a flag carrier, at least it can still have its own international airline without declaring it a flag carrier, much like Hawaii has Hawaiian Airlines.

#10
Stevphfeniey

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Maybe if Puerto Rico weren't in tens of billions of dollars in debt requiring a financial intervention maybe their economy would support a halfway decent sized airline.

Using AE to simulate growth is basically assuming that your economy will grow at a rate of your choosing indefinitely.

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#11
Avelo

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Maybe if Puerto Rico weren't in tens of billions of dollars in debt requiring a financial intervention maybe their economy would support a halfway decent sized airline.

Using AE to simulate growth is basically assuming that your economy will grow at a rate of your choosing indefinitely.

If that was the case, how many destinations would it serve at most, assuming Puerto Rico wasn't in debt?




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