News

Panama’s fast-growing Copa Airlines generated international headlines last week with an order for $6.6 billion worth of new planes, signaling the airline’s commitment to grow Panama City’s global connections.

Copa agreed to buying 61 737 Max 8 and Max 9 jets from Boeing, in a ceremony that was attended by U.S. President Barak Obama, who was in Panama City for the Summit of the Americas. Described as “the largest commercial transaction ever between a Panamanian and a U.S.-based company,” the deal will make Copa the first airline in the region to operate the 737 MAX 9 on “deep South American routes,” according to Boeing.

The deal is part of Copa’s plan to develop Panama City as the “Hub of Americas,” which we believe will be a major driver for the property market.  Copa now offers connections to 73 destinations in 30 countries – exposing more and more people around the world to the opportunities in the capital city.

The correlation between airlines and real estate is not simply real estate hype. As we’ve discussed in previous posts, easy air access is consistently a catalyst in growing international property markets. For evidence, look at what budget airlines did to small cities in France and Spain. Dubai’s market is largely the result of easy flights from the U.K.

In many ways, an aggressively expanding airline is a leading indicator of the property market. Copa’s flights will bring more investors, tourists and corporate executives to Panama City. At the same time, the airline will promote Panama’s attributes in new cities, growing both the leisure and business traffic.

Boeing chief executive Jim McNerney labeled Copa as “one of the most progressive airlines in the world.” The Panama airline has a “history of leading the way for Latin America’s aviation industry, and this order shows their dedication to continuous improvement in performance, customer satisfaction and efficiency,” he wrote in a statement.

Read more about the deal on Boeing’s site.

Duncan McGowan is president of Punta Pacifica Realty, a Panama real estate agency focused on Punta Pacifica, the exclusive neighborhood of 18 towers perched on the edge of the Pacific Ocean.