This summer, for the first time since the early 1990s there could be an out and out airfare war between Maya Island and Tropic Air.
Today Tropic announced that rising fuel and insurance rates have forced the company to increase their airfares by 10% effective July 15. But since that announcement, Maya Island Air has confirmed that it will offer as much as a 20% discount on selected routes. It is a battle that could get ugly because, if you do the math, when Tropic increases its rates a roundtrip ticket from Belize City to San Pedro will jump from $99 to just under $110. And next door Maya Island will do just the opposite and the same roundtrip ticket could cost just $80 that is an unprecedented $30 difference between the two competitors.
A Maya Island spokesperson confirmed to 7NEWS that the new rates could be in effect as early as this Thursday July 1st. We were told the discounts are being offered as a new marketing strategy for their Belize to San Pedro and Corozal to Belize City routes. Over at Tropic Air CEO Steve Schulte says the increased are based on cost and sound business principles. He says Maya might be able to afford the discount since they have a smaller operation and lower wage bill. Schulte was however adamant that Tropic Air is the industry leader and normally sets the rates. The last rate change was in December of 2000. Tropic Air's new rates take effect on July 15th.