Copa Airways is making a giant push to draw U.S. clients.
Recent off a giant growth in North America, the Panama-based service tells TPG it is mulling a brand new cobranded bank card within the U.S. because it seems to be to make a fair larger splash available in the market.
And do not be shocked if the airline’s ConnectMiles loyalty program quickly positive factors a significant bank card switch companion — a transfer that might provide vacationers new methods to show their bank card factors into Star Alliance redemptions. It is half of a bigger push by the airline to up its loyalty recreation, all whereas staying true to its bigger quest: funneling passengers via its Panama Metropolis “Hub of the Americas,” the place vacationers can hook up with extra Western Hemisphere locations than most can identify.
“We simply follow our method. It is labored,” Marco Ocando, Copa’s senior director of promoting, company communications and loyalty, stated in an unique interview with TPG. “Many airways have tried to copy what we do. Some are within the technique of failing at doing that.”
Specializing in the ‘fundamentals’
Copa’s connectivity throughout the Americas has lengthy been its calling card.
Whereas few world vacationers would checklist the service among the many world’s most premium, that is partially by design: Contained in the airline’s C-suite, executives have made it clear that providing a luxurious expertise on par with United Airways’ Polaris cabin is much much less very important to Copa’s success than sustaining its traditionally robust operational efficiency.
On time and underneath funds
In 2024, the airline turned within the finest on-time price of any service in Latin America, per Cirium. And thru the years, Copa has produced an enviable monitor report for profitability.
That mixture has executives satisfied that the airline’s strongest path ahead is to not blindly observe the premium wave that is swept over the airline trade lately — one which’s seen a variety of carriers add higher-end seats and swankier lounges.
“We do not take part in that recreation,” Ocando stated, providing a poignant sports activities metaphor. “It is concerning the staff that’s centered on the basics. Not flashy dunks or issues like that.”
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Connecting the Americas
For Copa, these “fundamentals” as an alternative embody an expansive route map that, as of this fall, featured nonstop service to no less than 86 cities from its Tocumen Worldwide Airport (PTY) hub.
Take into consideration how Delta Air Strains filters connecting passengers via Atlanta or American Airways via Charlotte. Copa does the identical however through its de facto gateway between North and South America.
Should you dwell on both continent, there is a good likelihood Copa can get you to your vacation spot with only one cease. Whether or not you are hoping to ski within the Andes, tour Peru’s magnificent Machu Picchu or sip wine in Mendoza, Argentina, a one-stop itinerary is an choice, whether or not you are flying from New York or Raleigh, North Carolina.
“We join secondary with secondary. We join comparatively small with small,” Pedro Heilbron, CEO of Copa Holdings and Copa Airways, stated whereas talking to TPG from the service’s headquarters. “It is a community that makes it simpler to be related.”
Straightforward connections … and stopovers
Emphasis on “straightforward.”
Due to the way in which Copa’s Panama Metropolis hub is ready up, connections are a breeze in comparison with different main world airports.
Vacationers passing via PTY do not should clear immigration or undergo extra safety; it feels so simple as a home connection within the U.S.
On the flip facet, there is a common various for vacationers hoping to get a style of Panama past the airport.
Copa permits vacationers passing via its residence metropolis to construct a stopover of between one and 7 days into their itinerary at no added value — a approach to tour the Panama Canal in your approach to Buenos Aires, Argentina, or stroll the historic cobblestone Casco Viejo district earlier than continuing onward to Lima, Peru.
A deeper loyalty push
If there’s one space the place Copa sees a significant alternative to develop and evolve, it probably surrounds its ConnectMiles loyalty program — particularly as prime opponents have turned their loyalty applications into money cows.
Executives inform TPG that they are actively exploring methods to reimagine the 10-year-old program, now nearing 5 million members.
“There’s much more alternatives for us to create extra earn and redemption alternatives,” stated Robert Carey, Copa’s government vice chairman.
New cobranded bank card on the horizon?
A type of alternatives might come to U.S. clients within the type of a brand new cobranded bank card.
Copa executives acknowledged the airline is in talks to launch a U.S. bank card within the close to future.
“That is clearly a big market with some potential,” Carey stated.
It is a transfer that is proved profitable for loads of different worldwide airways. To not point out, it is one Copa sees as a approach to drive loyalty with its U.S. buyer base.
Copa eyes bank card transfers to ConnectMiles
Considerably, Copa additionally confirmed it is in talks to companion with a significant transferable bank card rewards program.
At present, there is not any approach to switch versatile bank card factors or miles from issuers like American Specific, Capital One, Chase and Citi to Copa for a ConnectMiles redemption.
However that might quickly change.
“As a matter of truth,” Ocando stated, “We’re exploring, as we communicate, within the U.S., alternatives to try this.”
It might be an intriguing improvement for points- and miles-savvy vacationers.
Lately, as many U.S. airways have hiked redemption thresholds for award journey, worldwide carriers’ loyalty applications have supplied a few of the highest-value redemptions — whether or not it is Air France and KLM’s Flying Blue or Avianca’s LifeMiles.
That opens a chance for Copa, which nonetheless units its miles costs through a hard and fast, predictable award chart as an alternative of through dynamic pricing like many U.S. airways.
And direct bank card transfers to Copa’s ConnectMiles might open a variety of redemption candy spots on companion flights throughout its community of Star Alliance companions.
Mixed with new advantages the airline is eyeing, count on to see loyalty be one of many largest avenues for change on the airline within the coming years.
“Persons are on the lookout for options totally different to these [programs] which can be too advanced,” Ocando stated.
A watch on the longer term
Clearly, a whole lot of Copa’s future plans hinge on deepening loyalty and driving connectivity via its Panama hub.
That does not imply the airline is ignoring the worldwide airline trade’s march towards premium.
We should always notice: Copa does provide a lie-flat product on its Boeing 737 MAX 9s that function its longest routes, together with to the West Coast.
In the meantime, the airline tells TPG it is exploring onboard Wi-Fi for its planes, an inflight amenity that is more and more necessary to passengers.
“It is only a matter of time [until the amenity is available on Copa flights],” Heilbron confirmed.
Copa additionally operates a half dozen lounges, together with a gorgeous outpost at its residence base in Panama Metropolis.
On the identical time, leaders argue these merchandise — and people to return — will at all times be much less core to the airline’s success than its community and operation.
And Copa is betting that readability will hold its hub, and its method, flying excessive.
“The way in which we have at all times accomplished issues is it is concerning the numbers. It is about what [really makes] sense. It is not concerning the flashiest, latest, largest, coolest … no matter,” Heilbron stated. “We’re attempting to be very pragmatic about issues. Not falling in love with stuff.”
