Silvia Cairo. Chief of Iberia´s International Sales Division

Silvia, this is no doubt a major agreement, but I understand you had direct flights from Spain to Guatemala and Costa Rica in the past, and that these flights were cancelled due to financial reasons. Won´t this be a step forward now and another step backward later on when problems with the U.S. are over?

No, I think it´s quite the opposite. It´s true that Iberia has been around in this region for a mighty long time, over thirty years. Operations at the Miami hub came at a time where there was no strengthening and no growth in these travel destinations. Right now, and given the dreadful situation in the United States as a result of the infamous 9/11 terrorist attacks, we understand that the market -basically Europe and Spain- are matured markets that know the area well, so this is the right time to develop these destinations, right enough to take a chance on an operation as huge as this one, an operation we´ve pinned many hopes on. There won´t be any backpedaling, no way. I don´t see any reason to do that.

As we speak, Iberia has no direct flights to all those destinations, but it´s rather making stopovers in other Central American sites. Does this mean these destinations can little by little become a hub that will eventually replace Miami in terms of Latin American routes?

The implementation of direct flights, either well combined in a two-pronged way or nonstop -as in the case of Costa Rica- doesn´t make room for a hub. What we need to do is keep developing these destinations with three, four or five flights a week in all points, and pave the way to open up the rest of the Central American destinations.

Codeshare accords with local or regional airlines, as in the case of TACA, what repercussions will they have in the future on your OneWorld partners?

TACA, for example, is a company devoted to serve Central America, and sometimes in this business you really have to find out whether you can actually put two and two together. I mean, sometimes you need to cash in on any opportunity that comes knocking on your door. TACA will be our partner from now on, from October 1. They have big perspectives in mind, and so do we. We´re not closed to any operation because, I tell you, in this business you need to keep your mind open and forget about paradigms, so that you can actually see the outreach and scope of any collaboration plan.

As to COPA, that´s covering Panama much better than TACA right now, what options can you open up with them?

With COPA, like any other dealer in the area, we´re holding talks and finding out what opportunities are in store for everyone.

All these operations you´ve conducted in Central America are somewhat supported by the Central American governments. Will there only be economic support to the deals or you´ll also get political backing?

These is basically promotional support to advertise the region. Governments need to get hyped as travel destinations because it´s in their best interest. But we also need to see Central American going stronger as a major alternative travel destination for all Europe.

Has the opening of a CATA office in Spain as the European HQ eased your job in this sense?

I guess Central American governments are implementing a good promotional policy as a multi-destination choice. And I believe this policy will start paying off anytime soon. There´s no doubt that opening an office in Madrid brings better opportunities to strengthen a stance and having faster and more adequate coordination across the entire European market.

How much does Panama mean to you as far as Central American destinations are concerned?

Panama is one of the major travel destinations, as well as Guatemala, Costa Rica and the rest of the Central American capitals. The fact of the matter is that Panama has an additional element within the realm of Central American destinations that leans heavily to business travelers and investors. As you know, Panama is an offshore zone with a new government that´s really bent on welcoming investors from Europe with open arms. That´s also the case of Guatemala.

As to strategic changes in your company following the purchase of new jetliners, are you going to put more flights?

Those changes are going to bring a whole lot more than just more offers. Just a few weeks from now, we´ll receive a new 340-600 reconverted aircraft. The new Business Plus, that can be virtually unfolded into a bed for long-range travel, is going to be a top-flight product, especially designed to serve Iberia´s long-range destinations

What does Brazil mean to you right now?

Brazil is a major market niche in Latin America. As you know well, we´re serving Rio de Janeiro and Sao Paolo. There are few competitors in Rio, while we´re already operating four weekly flights there, and we´re intended to ratchet that number up.

What do you make of the entry of two Spanish tour operators, like Pullmantur and Air Europa, in destinations like Mexico with regular flights?

Iberia is a network company that serves Mexico with a couple of daily flights. Markets are free, so competitors can walk in and out of them, and the company with the best product should get most of the credit, and that company is Iberia. As a network company, we offer connections to the rest of Spain and the rest of Europe. Our accords with Mexicana (de Aviacion) puts us in a position to do exactly the same in Mexico.

As to these flights you´ve opened to Central America, what could they mean to a company like Air Madrid that has just cut its teeth in the market by flying to the same destinations you´re flying to now?

Air Madrid is not my business. Iberia is a network company devoted to catering to Europe, and from there we channel all the traffic toward other destinations. We´re talking about a company that´s slotted on a different tier and deals with other market niches.

What do you think this Central America Travel Market has actually done for the sake of the Central American market?

I think this is a major effort on the part of Central America, especially Guatemala and the country´s new administration in this particular case, that are clearly leaning to Europe and trying to use tourism as a lever to push development and growth forward. We see eye to eye with (Guatemalan authorities) in that respect and Iberia sticks to its policy of playing a role in the development of the region. I believe this has been a very positive event, a highly professional gathering. I wish it luck in the future.