Copa Airways is making a giant push to draw U.S. prospects.
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 good points a significant bank card switch companion — a transfer that might supply 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 sport, all whereas staying true to its bigger quest: funneling passengers by way of its Panama Metropolis “Hub of the Americas,” the place vacationers can connect with extra Western Hemisphere locations than most can identify.
“We simply keep on with our method. It is labored,” Marco Ocando, Copa’s senior director of promoting, company communications and loyalty, mentioned in an unique interview with TPG. “Many airways have tried to copy what we do. Some are within the strategy 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 listing 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 way much less very important to Copa’s success than sustaining its traditionally sturdy operational efficiency.
On time and underneath funds
In 2024, the airline turned within the finest on-time fee of any service in Latin America, per Cirium. And thru the years, Copa has produced an enviable monitor document 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 in recent times — one which’s seen a variety of carriers add higher-end seats and swankier lounges.
“We do not take part in that sport,” Ocando mentioned, providing a poignant sports activities metaphor. “It is in regards to the group 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 a substitute embody an expansive route map that, as of this fall, featured nonstop service to at the very least 86 cities from its Tocumen Worldwide Airport (PTY) hub.
Take into consideration how Delta Air Traces filters connecting passengers by way of Atlanta or American Airways by way of Charlotte. Copa does the identical however through its de facto gateway between North and South America.
In the event you stay 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, mentioned whereas chatting with TPG from the service’s headquarters. “It is a community that makes it simpler to be related.”
Straightforward connections … and stopovers
Emphasis on “simple.”
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 by way of PTY do not must clear immigration or undergo further safety; it feels so simple as a home connection within the U.S.
On the flip aspect, there is a common various for vacationers hoping to get a style of Panama past the airport.
Copa permits vacationers passing by way of its residence metropolis to construct a stopover of between one and 7 days into their itinerary at no added price — a option to tour the Panama Canal in your option 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 seemingly surrounds its ConnectMiles loyalty program — particularly as prime rivals 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,” mentioned Robert Carey, Copa’s govt vp.
New cobranded bank card on the horizon?
A kind of alternatives might come to U.S. prospects 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 mentioned.
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 option 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.
Immediately, there is no option to switch versatile bank card factors or miles from issuers like American Categorical, Capital One, Chase and Citi to Copa for a ConnectMiles redemption.
However that might quickly change.
“As a matter of reality,” Ocando mentioned, “We’re exploring, as we converse, within the U.S., alternatives to try this.”
It will 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 possibility for Copa, which nonetheless units its miles costs through a set, predictable award chart as a substitute of through dynamic pricing like many U.S. airways.
And direct bank card transfers to Copa’s ConnectMiles might open a spread 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 alternate options totally different to these [programs] which are too complicated,” Ocando mentioned.
An eye fixed on the longer term
Clearly, a whole lot of Copa’s future plans hinge on deepening loyalty and driving connectivity by way of its Panama hub.
That does not imply the airline is ignoring the worldwide airline trade’s march towards premium.
We must always word: Copa does supply 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 essential 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 good looking outpost at its residence base in Panama Metropolis.
On the similar 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 maintain its hub, and its method, flying excessive.
“The best way we have at all times finished issues is it is in regards to the numbers. It is about what [really makes] sense. It isn’t in regards to the flashiest, latest, largest, coolest … no matter,” Heilbron mentioned. “We’re making an attempt to be very pragmatic about issues. Not falling in love with stuff.”
