Dynamic Airways taps into San Juan’s largest unserved market

The airline, founded in 2010, has launched a route from Los Angeles International Airport to Luis Muñoz Marín International Airport in San Juan, Puerto Rico. This direct service will tap into a growing market that has been unserved since 2014.

US carrier Dynamic Airways has launched new routes from both John F. Kennedy International Airport, New York and Los Angeles International Airport. From New York, Dynamic will provide a daily service to Cancun, Mexico and a six times weekly service to Punta Cana, Dominican Republic. A twice weekly service to Luis Muñoz Marín International Airport in San Juan, Puerto Rico and a four times weekly service to Cancun will be served from Los Angeles.

By adding the Los Angeles –San Juan service to their network, Dynamic will now be able to cater to one of the largest origin and destination (O&D) markets. This route has not been served since American Airlines stopped its service in 2014. Since then, many connecting flights have been served through Miami. Los Angeles may only be the 11th largest market for San Juan, but it is currently the largest indirect market.

The largely leisure route cannot be served by some of the airlines competitors. With a flight time of around seven and a half hours, it is not a narrow body market, but Dynamic’s low cost model has the ability to serve this city pair. The airline has operated wide body aircraft since 2009, and currently operate a fleet of Boeing 767-200/300 aircraft.

Luis Muñoz Marín International Airport is the busiest airport in the Caribbean for passenger traffic, with 8.9 million passengers in 2015. The airport was the gateway to the recent Routes Americas forum which was hosted by The Puerto Rico Tourism Company and partners Aerostar Airport Holdings and Meet Puerto Rico. Airport officials stated at the event its ambition to break the ten million passenger milestone by 2017.

In terms of US passengers, between January and November 2015, arrival passengers grew on average by 0.49 percent, whereas departure passenger’s average growth was 1.09 percent. The growth is positive, and sure to continue with the added service by Dynamic. San Juan’s passenger numbers dropped after American Airlines dehubbed the airport in 2008. In 2012, Aerostar Airport Holdings was awarded a 40 year lease to operate SJU via a request for proposals process, bringing not only an infusion of funds but also best practices and the experience necessary to bring the airport into the future.

For the first quarter of 2016, it is estimated that airlines will carry 1.4 million one way seats from San Juan, an almost 13 percent year on year increase. Nearly all carriers that serve the airport have added capacity recently. However, there is a huge gap on the US West Coast out of San Juan, with no destination currently served – the furthest route in the United States would be Dallas.

Aside from beginning services to an in demand, unserved route, Dynamic Airways will be offering services to fast growing destinations in Mexico and the Dominican Republic.

Cancun is Mexico’s second busiest airport, after Mexico City International Airport. In the first half of the 2015 calendar year, the number of international tourists coming to Mexico surpassed 18.7 million; an increase of more than seven percent.

Between 2002 and 2013, passenger numbers into Cancun doubled, although there was a post-recession dip in 2009, but demand grew by 43 percent in the four years after. Spring Break in March is the busiest time in Cancun, and numbers start to drop in September – Dynamic’s service to Cancun is scheduled to run until August 31, picking up holidaymakers before the dip begins.

Cancun Airport have begun to expand their premises to deal with growing passenger numbers, with figures expected to continue growing rapidly. An investment plan made by Grupo Aeroportuario del Sureste (ASUR) of 4.87 million pesos has been invested in Cancun. This plan includes the expansion of Terminal 3, which will see an increase of capacity by about four million passengers a year, and a new Terminal 4 – which is set to open later this year. Passenger numbers for Cancun Airport are close to 20 million for 2015 – traffic has grown at an average annual rate of eleven percent a year.

Punta Cana International Airport is the busiest airport in the Dominican Republic, and is one of the most advanced in the Caribbean region. It is the second busiest airport in the Caribbean – surpassed only by San Juan. In 2014, a new international terminal was built in order to deal with growing traffic demands, as well as opening a new runway and control tower in 2011. Punta Cana International Airport also handled almost six million passengers in the 2014 calendar year; an increase of 12.5 percent.

In 2010, Punta Cana began their extension plan, dubbed the ‘PUJ Gateway’. The expansion included a new larger runway, expansion of existing taxiways and construction of a new taxiway. As a result of this, the airport is now capable to receive the A380 and will be able to accommodate up to 10 million passengers by 2020. Passenger numbers more than doubled in just two years – in 2012, the airport served 2.4 million arriving international passengers, which went up to 5.9 million in 2014. The airport can boast the highest percentage growth in terms of passenger traffic in Latin America.

Dynamic has planned to focus on operations within the Chinese and Japanese markets, and will be attending the forthcoming Routes Asia in Manila, Philippines, but the latest route expansion will see it take advantage of rapidly growing markets as well as serving a city pair that has not been available for more than 12 months.