Puerto Rican company Green Isle Inc., which owns and operates several small hotels in the Isla Verde area, has filed for Chapter 11 bankruptcy, listing nearly $8.1 million in debt. (www.facebook.com/coquiinn)

Puerto Rican company Green Isle Inc., which owns and operates several small hotels in the Isla Verde area, has filed for Chapter 11 bankruptcy, listing nearly $8.1 million in debt.

The company — which has been in business since 1978 — filed its petition at the U.S. Bankruptcy Court, listing the Mango Inn, Casa Mathiesen, and Coquí Inn, among the properties it is seeking to reorganize.

Green Isle Inc. owes the bulk of its debt, $8 million, to Banco Popular, followed by the Puerto Rico Electric Power Authority ($20,210), the Municipal Revenue Collections Agency ($4,000), the Puerto Rico Tourism Company ($3,362) and the Internal Revenue Service ($2,689.)

The trio of properties is located about two miles from the Luis Muñoz Marín International Airport and within walking distance to Isle Verde beach. Described by recent guests as modest and affordable, the three small hotels are two-story properties. While Mango Inn offers 35 rooms, Casa Mathiesen and Coquí Inn offer 50 rooms operating as a single property.

During April’s “Saborea” event, La Casa, the restaurant at the Royal Isabela Resort, presented memorable culinary creations, for which it earned third place in the People’s Choice vote.

The Puerto Rico Hotel and Tourism Association disclosed details Tuesday of the “Saborea Puerto Rico Summer Party,” a new event to kick off the summer, and complement the promotion of culinary initiatives on the island, while showcasing the best in local cuisine.

The event will take place Thursday from 6:30 p.m. to 10:30 p.m. at the Caribe Hilton Hotel, said PHRTA President Clarisa Jiménez.

“We want people that enjoy our food to not have to wait until April of each year for ‘Saborea Puerto Rico, a culinary extravaganza’ event,” she said. “This is why we have created this series of additional events so they can enjoy good food and many beverage stations in a celebratory environment to welcome the summer.”

“Our food has so many attributes that we have chosen more than 15 of the best restaurants to have a station where they can offer their delicious dishes,” she said.

The roster of participants includes: Marullo Art Cuisine; Tanamá Restaurant @ Holiday Inn Ponce; La Casa @ Royal Isabela ; MBTI; Zest Restaurant; Paellas y Algo Más; Perurrican; Caribe Hilton Hotel; Wok Asian Catering; Lola’s Eclectic Cuisine; Yam Burger; Passion Sekua; San Juan Marriott Resort & Stellaris Casino; Shima’s Restaurant; Made in Puerto Rico; Chef Marilyn; Sary’s Basket Cake; and Vany’s Cakes & More.

Meanwhile, Cervecera de Puerto Rico, Destilería Serrallés, Henkell, La Cava de Serallés and Mixólogos de Puerto Rico will be on hand to provide the drinks.

During the event, the PRHTA will also recognize the three winners of the “People’s Choice” awards voting that took place during Saborea Puerto Rico in April, namely Aguada’s Marullo Art Cuisine, Tanamá Restaurant @ Holiday Inn Ponce and La Casa @ Royal Isabela.

Tickets are $65, or $50 if purchased with a MasterCard debit or credit card, organizers said.

House Speaker Jaime Perelló lists the number of slogans used to promote the island in recent years.

Identified as one of the “most emblematic pursuits of Puerto Rico’s legislature in this term,” the House presented a bill establishing the island’s permanent branding to be used in all government advertising campaigns for global projection, both in tourism and economic development.

House Bill 4 proposing the “Law for the Development of a Country Brand” was submitted to a vote Tuesday, and was expected to gain approval.

Details of the measure were discussed earlier in the day during the “Marca de País” (“Country Brand”) forum, hosted by House Speaker Jaime Perelló, with participation from members of the executive branch and the private sector. Among other things, the bill establishes the appropriate processes for the adoption of a brand for the island and ensures that its use is “continuous and consistent.”

The effort seeks to put an end to the practice of changing brands and advertising slogans every time there is a change in administration, or responding to somebody’s whim. Over the past decade, the island has been promoted in the U.S. and worldwide with a variety of slogans ranging from “Puerto Rico does it better” to “Explore beyond the shore” to “The Islands of Puerto Rico.”

For the better part of the last two years, the Puerto Rico Hotel and Tourism Association lobbied for the establishment of a Destination Management Organization to act as an independent entity in charge of overseeing the island’s marketing campaigns. Gov. Alejandro García-Padilla’s administration quashed those efforts upon taking office in January.

In his introduction of the bill, Perelló explained that the goal is to establish a common platform so that public-private initiatives can be “carried out in an articulated way” to strengthen Puerto Rico’s potential in international investment markets, or in tourism and educational arenas, designating the branding to be used uniformly by everyone to promote the island.

“The bill creates a basic strategy that includes Puerto Rico’s differential values to establish the comparative and competitive advantages to position the island’s services, places and products in the global market,” Perelló said.

“This way, the message must be carried in any name, term, sign, symbol, slogan or design, or combination thereof used to identify the qualities, distinctive services and strengths of a country, so that it can be differentiated from other destinations,” said Perelló during the forum.

The bill was scrutinized during four public hearings conducted by the House Socioeconomic and Planning Committee in recent weeks.

“After the evaluation of the bill, we held hearings participated by different sectors, such as universities, tourism associations, advertising and marketing agencies, government agencies and different economic sectors,” said Rep. Luis Raúl Torres, chairman of the committee that led the efforts. “We were able to evaluate the different testimonies, conducting a democratic process in favor of the people.”

Meanwhile, Rep. Angel Matos-García, chairman of the House Industry Development Committee, said this bill will lead Puerto Rico to successfully promoting comprehensive economic development in various sectors.

“Puerto Rico has been very disadvantaged on a global competitive level. The ‘Law for the Development of a Country Brand’ seeks to avoid the lack of consistency in the strategy, and the lack of a public policy determination focused on comprehensive economic development by creating a memorable brand,” said the lawmaker who is also a professional publicist by trade.

Agustín Arellano, CEO of LMM operator Aerostar Airport Holdings. (Credit: © Mauricio Pascual)

New York — Puerto Rico’s top airport official was on hand for last Friday’s widely attended inauguration of Delta Air Lines’ new terminal at John F. Kennedy International Airport, looking for ideas to improve San Juan’s Luis Muñoz Marín hub.

Agustín Arellano, CEO of LMM operator Aerostar Airport Holdings, who was among Delta’s VIP guests, confirmed that while in this city, he met with top Delta executives to explore ways to modernize the carrier’s operation on the island.

“We completed the plan with JetBlue and we want to do the same with Delta now that we’re going to start modernizing Terminal B. It’s good to see this concept and how much of it can be integrated in San Juan, understanding that they are two different passenger profiles,” Arellano said. “But, we’re looking at what can be integrated, and that’s why we’re here meeting with Delta personnel.”

The new 346,000 square-foot $1.4 billion terminal expansion at this international travel hub adds 11 additional gates to T4’s Concourse B and houses dozens of concessions and other amenities for the thousands of passengers who move through the facility on a daily basis.

Off the top of his head, Arellano said T4’s modern passenger services and comforts, as well as retail concessions, are two of the areas that could potentially be replicated in San Juan.

“What we’re seeing here is an example of how we have to modernize and how it shouldn’t be a surprise to anyone that changes are made to what we’re used to,” Arellano said. “If there are changes in San Juan, it’s because they’re necessary, not because we want to push somebody out of an existing space. It’s because we need to modernize the commercial offer.”

Aerostar has already said it plans to start renovating LMM in November, when Terminal B will be closed down and all carriers and concessions will be moved to Terminal D. The operator will then begin pumping significant money into improvements. Most will benefit Delta and other carriers, which would not be required to invest.

“Delta is not putting money into the terminal, but rather into its operation in terms of flight frequencies and destinations,” he said. “We make the investment in the terminal.”

Ultimately, Aerostar and the carriers split the profits of an expanded operation, as business partners, he said. The Puerto Rico Ports Authority, which owns the airport, will also get its share of the revenue as established in the 40-year lease contract signed earlier this year.

Delta’s Terminal A has a large check-in area for regular and business class customers.

Bloomberg, Branson & baseball players
The May 24^th inauguration ceremony drew a list of prominent government and business representatives, as well as several athletes who are synonymous with The Big Apple.

New York City Mayor Michael Bloomberg, Virgin Atlantic CEO Richard Branson — whose airline will soon be partly owned by Delta — and Major League Baseball legends Bernie Williams and Keith Hernández were among the VIPs in attendance.

“Thanks to Delta’s $1.4 billion investment, travelers to and from JFK will experience a state-of-the-art facility with improved amenities and better services,” said Bloomberg. “Over the past six years, Delta has doubled the number of employees based at JFK and created quality construction jobs, with a focus on local hiring. We look forward to their continued expansion and partnership with New York City.”

Delta, the Port Authority of New York and New Jersey and Schiphol Group financed the T4 expansion project jointly. During the news conference, Delta CEO Richard Anderson said Delta’s investments “were just beginning” at JFK, where it will immediately start on a second expansion at T4 — a $175 million project that will add 11 more gates and 75,000 additional square feet.

Meanwhile, Anderson said, “The state-of-the-art Terminal 4 facilities have been years in the making and Delta people, global customers and the residents of New York now have the international hub facility that they expect and deserve.”

“It’s an exciting time at Delta and JFK Terminal 4 is emblematic of the investments we are making in New York and around the world.  We are celebrating today thanks to the hard work and dedication of our partners in this project including the Port Authority of New York and New Jersey, JFKIAT and the Schiphol Group,” he said.

Delta Air Lines CEO Richard Anderson

NEW YORK — On the eve of inaugurating its new $1.4 billion Terminal 4 at John F. Kennedy Airport in this major eastern seaboard travel hub, Delta Air Lines CEO Richard Anderson said in doing so, the airline is placing the “last piece of the puzzle” in becoming a “preeminent carrier” in combination with its industry business partners.

“This is a watershed event for Delta. Terminal 4 is a very major step forward for Delta. It’s a $1.4 billion investment. It is the largest international terminal in the United States, in the largest international airport in the United States,” he said Thursday, referring to the event that he said marks a critical turning point for the carrier.

The T4 facility offers service to 100 cities worldwide, has around 100 check-in kiosk capabilities throughout the facility and has an arrival hall that can handle 3,000 passengers per hour, among other features.

Delta, the Port Authority of New York and New Jersey and Schiphol Group financed the T4 expansion project jointly. Earlier this year, the carrier announced it would continue expansion at JFK with a $175 million project that will add 11 gates and 75,000 square feet to T4’s Concourse B.

The inauguration of the new JFK terminal is one of several events on the company’s checklist, which also includes wrapping up the purchase of a 49 percent stake in Virgin Atlantic from Singapore Airlines announced late last year. That transaction is expected to clear all legal regulatory hurdles by the third quarter, when Delta will reportedly become the second-largest carrier in the world, Anderson said.

During a news conference held for members of the media flown into New York from around the globe to witness today’s inauguration of the T4 facility, Anderson fielded questions about nearly every market the carrier serves, including San Juan, where it has had a presence since Jan. 10, 1953.

Specifically, Anderson was pressed about the recent management change at the Luis Muñoz Marín International Airport, which is now being run by Aerostar Airport Holdings.

“San Juan is a very important city for Delta, it’s a very good place to do business,” Anderson said. “The privatization of the airport has not had any effect on our plans for the airport, but it has been good and we were involved in the process.”

Nicolás Ferri, vice president of the Latin America and Caribbean region for Delta Air Lines, said later in the day that the carrier has always had a good relationship with LMM’s operators, so the expectation remains the same.

“For us, this [the management change] has not been a major event. These things happen and we have very good relationships with all of the operators. We consider ourselves good business partners,” said Ferri. “We were part of that process, supported it when we were called to do so, and gave our opinion when it was necessary. But the truth is that service at the San Juan airport has always been good for us.”

The T4 facility offers service to 100 cities worldwide, has around 100 check-in kiosk capabilities throughout the facility and has an arrival hall that can handle 3,000 passengers per hour, among other features.

The NY-PR-LatAm connection
Puerto Rico plays a vital role in Delta’s success in the New York market, home to nearly 900,000 people of Puerto Rican descent, a full 27 percent of the Latino population living in this city.

In May 2012, Delta tripled the number of flights it operates between JFK and San Juan, which coupled with the routes to Atlanta, pushes the total number to 56 weekly flights out of LMM.

This summer, a fourth daily flight between JFK and San Juan will further expand options for Delta’s customers, who will also benefit from increased international access through the T4 facility.

“Delta has had significant build up from JFK to Latin America and the Caribbean and we should continue that investment. Those regions are quite strong and quite robust in terms of economic growth and tourists,” Anderson said.

Delta’s capacity in the region has more than doubled since 2003, from 7.1 billion available seat miles in 2003 to 17 billion in 2012. Meanwhile, passenger revenue grew from $600,000 in 2003 to $1.8 billion in 2012, Ferri noted.

“We’re expecting a 7 percent growth in capacity this year for the Latin American market,” Ferri told reporters.

This year, the carrier is marking its 15^th anniversary of nonstop service between the United States and Costa Rica, El Salvador, Guatemala, Panama, Peru and Venezuela.

Building on partnerships
Aside from its impending deal with Virgin Atlantic, Delta is also looking to cement its partnership agreements with other carriers worldwide, including Air France, KLM, GOL in Brazil and Aeromexico in Mexico, to keep the rhythm going on its global network expansion.

Delta’s business relationships could potentially open the door for new routes to Puerto Rico, something Gov. Alejandro García-Padilla’s is actively pursuing in countries like Brazil and Mexico.

“We would look forward to cooperating with the government of Puerto Rico and our partners at GOL and Mexico in expanding our service to Puerto Rico,” Anderson said.

Refinery fuels bottom line
In speaking with reporters, Anderson also discussed the benefit the carrier has reaped from its acquisition last year of a refinery complex from Phillips 66 located south of Philadelphia, for $150 million.

Through its subsidiary Monroe Energy LLC, Delta has gained access to pipelines and transportation assets to deliver jet fuel to its operations throughout the Northeast, including its hubs at LaGuardia and JFK. Delta buys 3 million gallons of jet fuel per year and spends $12 billion on it.

The refinery is now providing 80 percent of the fuel used for the U.S. operation, gaining the ability to push prices below diesel prices, Anderson said.

“This modest investment, the equivalent of the list price of a new widebody aircraft, will allow Delta to reduce its fuel expense by $300 million annually and ensure jet fuel availability in the Northeast,” Anderson said upon announcing the deal. “This strategy is aligned with the moves we have made to build a stronger airline for our shareholders, employees and customers.”

The equipment includes 200 53-footdry containers to be dedicated exclusively for the Puerto Rico trade route.

Crowley Maritime Corporation’s liner services group is adding more than 3,000 pieces of cargo handling equipment to its fleet through a $275 million investment, company officials announced Tuesday.

The additional resources will allow the company to better meet increasing customer demand throughout Puerto Rico, the Caribbean and Latin America service areas, the company said

The equipment includes 200 53-footdry containers to be dedicated exclusively for the Puerto Rico trade route; 200 45-foot (102-inch wide) dry containers; 500 20-foot dry containers; 1,000 40-foot dry high-cube containers; 337 40-foot refrigerated high-cube containers; 30 20-foot refrigerated containers; 461 underslung gensets; and 75 nose mount gensets.

“We are particularly pleased to be able to add to our supply of high-capacity 53-foot containers, which are in great demand in our Puerto Rico liner services,” said John Hourihan, Crowley general manager of Puerto Rico/Caribbean. “These units have a capacity up to 3,268 cubic feet and the capability to carry loads up to 42,660 pounds.”

The new equipment, which will replace some aging units and allow for growth, brings Crowley’s equipment totals to nearly 43,000 containers, chassis and other specialized units.

“These acquisitions reflect our continued commitment to reinvest in the business for the benefit of our customers,” said Steve Collar, Crowley senior vice president of Latin America liner services. “And it further aligns with our strategy and desire to have the most modern and most desired type of equipment available when and where our customers need it.”

In addition to meeting ISO standards for freight container door security applications, Crowley’s new containers, which are expected to arrive in Jacksonville this summer, have an extra bolt-type seal lock and 3/8’-thick plating at the top and bottom for maximum security, helping to prevent unlawful access.

From left: Jorge Colón-Gerena, Federico Stubbe and Bayamón Mayor Ramón Luis Rivera.

Guests and visitors to the new Hyatt Place Bayamón & El Tropical Casino will be able to grab a bite at Applebee’s, slated to open when the hotel inaugurates in December, officials said Tuesday.

The opening of Hyatt Place marks the return to Puerto Rico in this prestigious hotel chain, while Applebee’s future Bayamón location will be the fourth in the market, and the first in that town.

Through the simultaneous openings, PRISA Group Inc. and Apple Caribe Inc. will create 719 new direct, indirect and induced jobs — 459 from Hyatt Place and Tropical Casino and 260 from Applebee’s — in its operational phase with a total investment of approximately $51.5 million, of which $49.5 million is related to Hyatt Place and $2 million to the 6,000 square-foot restaurant.

“Hyatt Place Bayamón & El Tropical Casino features the conditions we seek to advance our growth strategy and positioning as a casual restaurant for the whole family,” said Jorge Colón-Gerena, president of Apple Caribe Inc., Applebee’s franchisee. “Its central location allows us to cater to different clients, both local and foreign tourists. This, combined with the spirit we share with Hyatt to contribute to economic development, predicts success for the initiative.”

The Hyatt and future Applebee’s restaurant are under construction and slated to open in December.

Located next to the Parque de las Ciencias Luis A. Ferré, Hyatt Place Bayamón & El Tropical Casino will be a seven-story structure with 156 rooms, a casino, restaurant and bar, and multistory parking for 250 vehicles, guest kitchen open 24 hours a day, more than 2,000 square feet of conference space, gym, outdoor pool, and free Wi-Fi access, among other amenities.

“The essence of the Applebee’s brand fits well with the Hyatt Place concept, a casual hotel focused on urban tourism, with an ideal location that offers high commercial, residential and tourist traffic, and because of the easy access to medical facilities and shopping in the area. In addition, Applebee’s expands the entertainment that Hyatt Place will offer the community,” said Federico Stubbe, president of hotel developer PRISA Group.

Hyatt Place Bayamón has a strong impact on the area’s economy and tourism development of the island, he said. PRISA Group is also develping two more properties in Manatí and the Convention Center District in Miramar, which will create a combined 1,421 jobs this year and next.

Terminal 4 at JFK International Airport is one of the “most modern, efficient, spacious and unique terminals in the New York area.” (Credit: www.wikipedia.org)

Delta Airlines is about to make a big landing in New York’s John F. Kennedy International Airport this week when it will officially inaugurate its new state-of-the-art facility at Terminal 4, which it has been expanding an upgrading since November 2010 through a $1.2 billion investment.

“May 24 will be an historic day for Delta and the city of New York as we officially open the new JFK Terminal 4,” said Gail Grimmett, Delta’s senior vice president – New York. “The new state-of-the-art T4 has customer conveniences that make it a more efficient international hub and unique amenities — like the 24,000 square foot Delta Sky Club and Sky Deck rooftop terrace — that our customers will enjoy.”

Terminal 4 at JFK International Airport is one of the “most modern, efficient, spacious and unique terminals in the New York area” serving nearly 30 international and domestic airlines carrying 12 million passengers, said JFKIAT LLC, a subsidiary of NV Luchthaven Schiphol, a Dutch company based in Amsterdam. JFKIAT is the only private, non-airline company to operate a terminal at JKF through a public-private partnership agreement.

“The project is the cornerstone of the airline’s huge expansion and facilities upgrades in New York. Up until now those efforts have been more visible at LaGuardia Airport, where Delta recently took over much of the US Airways terminal and added over 100 daily flights following the slot swap deal between those two airlines,” JFKIAT said.

However, JFK has been Delta’s New York hub for many years, occupying what have become very cramped quarters in Terminals 2 and 3. To remedy its growing pain problems, the carrier opted to add nine gates and expand capacity at Terminal 4, to where it will shift its international operations.

“The nine extra gates being added to the southwest end of the terminal’s Concourse B will funnel an additional 5 million passengers through the already well-used terminal. To handle those extra people, the terminal is getting more security screening lanes, more customs and immigration capacity and more check-in desks,” JFKIAT said.

The new gates and additional space will span about 491,000 square feet, including the new Delta Sky Club and Sky Deck rooftop terrace.

“When this terminal was built, the thinking was that before an international flight, passengers would go to the airport with their family a few hours early, eat some dinner and do some shopping, and then say their goodbyes before boarding,” said project director Harry Olsen.

“But the security screening process has changed significantly since the terminal opened in 2001 — four months prior to the 9/11 attacks,” he said. “That means customers are now far more anxious about getting through security and to their flight on time, so they want to get through the checkpoint as soon as possible.”

The Novotren route.

Interest in the Novotrén commuter train connecting Caguas to San Juan is apparently strong enough that more than half a dozen firms are waiting in the wings to participate in the bidding process for the project whose cost is estimated at $400 million.

“Thank God the interest is tremendous. We are very happy,” said Engineer José Izquierdo, who is the main advisor for the project at the Central Eastern Technological Initiative (Inteco, for its Spanish language acronym), an alliance of business, academia and municipalities from the island’s central and eastern region working together to promote the area’s development.

Inteco is the operational arm of Novotrén, a project initially championed by the late Caguas Mayor William Miranda-Marín.

At least nine consortiums have expressed an interest in developing the commuter service, according to Izquierdo. They include firms from Germany, India, Italy, South Korea, Spain and the U.S., he said.

Some of these firms are familiar with Puerto Rico, he said. That’s because last year they were drawn to the island by a similar project, a $365 million light-rail train system envisioned by former San Juan Mayor Jorge Santini as an extension of the Urban Train, which is run by the central government and connects San Juan with Bayamón.

Designed to run 5.3 miles from the historic Old San Juan district to the Sagrado Corazon Urban Train Station in Santurce, the light-rail train service would serve an estimated 28,700 users. San Juan is currently facing a difficult financial crisis but Mayor Carmen Yulín is on record saying she will pursue her predecessor’s project known as San Juan Automated Urban Transportation System, or Satour.

Meanwhile, the pre-qualification process for Novotrén could begin soon. The Puerto Rico Public-Private Partnership Authority (P3A), in charge of regulating private-public partnerships in Puerto Rico, is likely to announce a request for qualifications in the next two or three weeks, Izquierdo said.

Companies will have 30 days to submit their qualifications during which time they will also be invited to come to Puerto Rico for an industry outreach.

Turnkey project
Novotrén is a turnkey project, meaning that the winning bidder will have to handle all of its different phases; namely, design, construction, and operation. The company also must assume 100 percent of the project financing, with the government repaying the debt in installments over a period of time, just as if it were a mortgage, Izquierdo explained. Negotiations will determine the terms of repayment, he said.

Once P3A narrows the list of contenders down to four or five consortiums, participating bidders will be asked to submit requests for proposals. Izquierdo said evaluating the proposals should take about five months with a decision on the winning bid probably coming early next year. Actual construction, expected to take three years, could begin in March or April 2014, he said.

The Urban Train took almost a decade and $2.28 billion to become a reality. (Credit: © Mauricio Pascual)

Mass transportation off-track
So far, Puerto Rico’s experience with mass transit rail systems has been disappointing.

The Urban Train took almost a decade and $2.28 billion to become a reality. It finally kicked off in December 2004 and is now moving an average of 45,000 people during the work week, Monday through Friday. Weekend traffic is lower.

It has yet to make money.

According to information provided by the Highway and Transportation Authority (ACT), the train generates $8 million in yearly revenues.

In fact, the Urban Train is running at a loss of $80 million to $90 million a year, said ACT Executive Director Javier Ramos, adding that his agency is looking at ways of increasing income, such as developing 10 government-owned plots near Urban Train stations through new housing and commercial uses. The stations also include commercial spaces but the government has attracted very few leases.

One of the factors contributing to the train’s dismal performance has been the central government’s failure to build a fully integrated mass transportation system in which component parts, such as the bus system, can be relied upon to provide dependable service. With the commonwealth’s current fiscal woes, it is unlikely this issue will be addressed anytime soon.

A 10.7-mile, fully automated rapid transit, the Urban Train has 16 stations along a single line. Novotrén will cover 17 miles and have only three stations: two in Caguas and one in San Juan, either close to the Medical Center or in Cupey, where passengers will be able to switch over to the Urban Train.

‘Complex’ system
Izquierdo described the Urban Train as a complex type of mass transportation system. This will not be the case for Novotrén, which he expects to be financially successful. It will take between $10 million and $15 million to run and the project was designed to be financially self-sufficient within 10 years of starting operations, Izquierdo said.

A source familiar with the Caguas mass transit plan cast doubt on its financial viability. Such systems, he said, usually require tens of millions of dollars in state subsidies but that is the inevitable price for a service that, he added, helps reduce traffic congestion, contamination, and road accidents.

Gov. Alejandro García-Padilla and Caguas Mayor Willie Miranda Torres at the signing of an accord to get the proposed Novotren rail system between
San Juan and Caguas off the ground.

Novotrén is expected to move 14,000 passengers daily, drawing users from Caguas and adjoining municipalities, including Humacao, Naguabo, Juncos, San Lorenzo, Cayey and Cidra. Still unclear is whether the train will use magnetic levitation (maglev technology) or operate on diesel or electricity.

In anticipation of the future rail system, Caguas has sought to shore up confidence in mass transportation. For example, Izquierdo said that Caguas has enlisted drivers of small private buses and cars known as “publicos” into a novel experiment: Under Transcriollo, the city pays each driver a monthly subsidy of $800 to $900 to run along specific routes from 5:30 a.m. to 7 p.m. and pick up paying passengers along the way.

Kicked off in Oct. 2011, Transcriollo counts with a yearly budget of close to $2 million and 161 publicos providing reliable, daily transportation. To make sure that drivers don’t play hooky, the city has installed a GPS device in each vehicle to verify they are on the job. Within the next three years, this initiative will be extended to another 10 municipalities, Izquierdo said.

Novotrén is billed as “an innovative and sustainable mass transit system” that will unite Caguas, the central-eastern region, and the metropolitan area, three zones that concentrate 43 percent of the island’s population. Its biggest selling point, according to Izquierdo, is that it will make a commute which in heavy traffic can take up to three hours into a breezy, 14-minute ride.

Whoever comes out the winner in the bidding process for Novotrén, he said, will have to prove that it can provide the most cost effective service and that the offer it is submitting “is the best one for the island.”

Interjet landed on Puerto Rican soil for the first time Tuesday afternoon.

Mexico’s second largest air carrier, Interjet, made its debut in the Puerto Rico market last night, with the arrival of its first chartered flight from Mexico City, carrying 150 passengers.

If all goes well over the next few months, or what airport officials called Interjet’s “warm-up period,” the carrier could begin offering regularly scheduled flights three times a week starting in December.

During a news conference at the Luis Muñoz Marín Airport on Tuesday, Ports Authority Executive Director Víctor Suárez said the last time a Mexican airline did business with Puerto Rico was in 2000, the last year when Mexicana de Aviación connected the island with the country.

“Interjet’s arrival opens the door to diversify Puerto Rico’s tourism offer and impact our economic development,” Tourism Company Executive Director Ingrid Rivera-Rocafort said. “This first trip in May will generate 300 hotel room nights, while groups arriving on charters in July and August will generate 1,575 room nights per month, for a total of 1,875 room nights during the months of May, July and August in total,” said Rivera Rocafort, adding that the total economic benefit for Puerto Rico during those three months will be close to $1.2 million.

Interjet Airlines, owned by the Alemán Group, is headquartered in Mexico City, from where it operates scheduled flights to 25 domestic and 8 international destinations. Interjet started operations on December 1, 2005, and has systematically been taking over the routes left unserved when Mexicana de Aviación ceased operations in August 2010, including the San Juan market.

Initially, Interjet will offer chartered flights from Mexico City to promote and generate interest in the route. However, during the news conference, Suárez admitted that negotiations with the airline are “in an advanced stage” to secure regular round-trip service.

Eventually, Interjet’s route could also offer a connection to Cancún, said Agustín Arellano, CEO of Aerostar Airport Holdings, LMM’s private operator.

“This is a clear example of the cooperation that we have established with the government, specifically the Ports Authority and the Tourism Company,” Arellano said. “Attracting more airlines and helping to promote the island as an ideal destination to establish new business relationships, in addition to cultural and tourist attractions is part of the commitment Aerostar made with the government of Puerto Rico and today we begin to see results.”

“It’s not that easy to open up a new flight route, and with this warm-up, Interjet is sparking the interest and demand for a new destination,” he said. “However, the demand has already been established, by the fact that as of today, more than 1,200 packages have been sold for travel in July and August.”

Interjet’s first passengers aboard the Mexico City-San Juan route paid between $690 and $780 for the round-trip, and many are arriving to hop on a cruise or explore the island via organized tours. Government officials said. Eventually, if steady demand is there and the thrice-weekly schedule is locked down, fares could drop, they added.

From left: Agustín Arellano, Ingrid Rivera-Rocafort and Víctor Suárez.

Chance to ‘break into’ new markets
These new flights will provide Puerto Rico with the foundation needed to break into new economic markets, with new opportunities for the tourism industry and conventions to be held in the island, Suárez said.

“Puerto Rico’s economic development depends greatly on how we interact with other countries, and the first step, without a doubt, should be connecting with our Latin American neighbors,” said Suárez. “Mexico is the second largest economy in Latin America and the third largest economy in the Americas after the United States and Brazil.”

“For many years in Puerto Rico was ignoring Latin America’s emerging economy, and today these countries have become areas of major economic focus,” he said. “For this reason it is important for us that Puerto Rico is accessible to the world and each day bring more tourists from different places.”

A second Interjet flight will land at LMM this Friday, at 10:50 a.m.

The National Glory will drop anchor at the Port of San Juan in June. (Credit: NSA)

California-based National Shipping of America announced Wednesday the start of the “Isla Verde Express,” a service that will connect Puerto Rico with the western United States via Houston every two weeks, staring May 29.

The first Houston-to-San Juan trip take place on the National Glory, a U.S. flagged container vessel with a capacity of 570 TEU — maritime industry-speak for twenty-foot equivalent container units — including 96 plugs for refrigerated containers.

The ship will head back to Houston out of the San Juan port on June 4, company officials said.

“After careful market analysis, we found that shippers west of the Mississippi River have few options to move cargo to and from Puerto Rico without having to use an East Coast port,” said Torey Presti, president of NSA.

The shipper will enter a market currently served by four other companies: Crowley, Horizon Lines, Sea Star and Trailer Bridge.

“A significant percentage of the mainland-Puerto Rico cargo is from Texas and the western states. By calling Houston, we offer a central U.S. location, which together with synchronized intermodal connections, enhances the options for shippers and keeps their supply chains predictable and steady,” he said.

The goal of the service is to provide customers with reliability, responsiveness, and transparency, Presti said.

“NSA is a small organization, but we have partnered with best-in-class companies to provide customers with outstanding personal service,” he added. Partners include general agent Norton Lilly, and intermodal provider Interdom.

Attemps to reach Ports Authority Executive Director Víctor Suárez for comment on the impact this new service will have on the economy and the island were unsuccessful Wednesday.

Modern, ‘green’ vessel
The National Glory will be the most modern and greenest vessel in the U.S.-Puerto Rico trade, upgraded in 2007 and configured for both containers and out-of-gauge cargo. It uses low-sulfur diesel oil to minimize the impact on air quality.

A unique feature of the service will be its transparent and easily understood fuel charge: it’s based on the most recent market conditions (adjusted quarterly) and vessel utilization. For a given price of fuel, the higher the vessel utilization, the lower the fuel charge per container assessed to the customer, NSA explained.

The IVE will call at the most flexible terminals in Houston and San Juan, offering direct rail links and value-added services such as warehousing, crossdocking, transloading, and bagging.

Cargo will discharge from the vessel and be available both in Houston and San Juan early on Tuesdays. This provides the rest of the week for delivery to distribution centers or onward intermodal transport without a weekend delay. The service will offer synchronized intermodal rail connections to and from major load centers and distribution hubs throughout the western U.S., including Los Angeles, Oakland, and Stockton.

Horizon Lines is the only other other carrier that provides a Houston-to-San Juan maritime connection. That said, NSA will offer its service in alternate weeks, complementing that service.

“The Isla Verde Express will help shippers maintain a consistent product flow to and from Puerto Rico,” Presti said. “That is vitally important to meet the demands of this unique island trade.”

Typical commodities shipped to Puerto Rico include resins, rice, beans, chemicals, beverages, and produce. From Puerto Rico, the U.S. mainland receives medical supplies, foodstuffs, and beverages.

In addition to dry and refrigerated containers, the National Glory is configured to accommodate a wide range of oversize, out-of-gauge, and project cargo. Examples include construction materials, machinery, and large vehicles.

From left: Chef Mario Pagán (Laurel + Lemongrass), Chef Pedro Torres (En Boga GastroBar), and Chef David Chaymol (Bistro de París).

The second edition of Puerto Rico Restaurant Week, an event that brings together the best eateries on the island with foodies looking to explore the best culinary options around, will take place May 14-28, organizers at Kinori Group said Tuesday.

A roster of 40 restaurants in San Juan, Santurce, Condado, Miramar, Isla Verde, Guaynabo, Ocean Park, Ponce, Río Grande, Guánica and Isabela, will take part in the event that takes place globally in major metropolitan areas, such as New York, Japan, Madrid, Singapore and Rio de Janeiro.

But to break away from traditional culinary events, Puerto Rico Restaurant Week will take place simultaneously in each restaurant – presenting a perfect opportunity to stop and enjoy dining out on creative dishes prepared especially for the event, organizers said.

Participating restaurants will be offering three-course menus for $26 or $36, depending on the establishment (alcoholic beverages, gratuity and tax are not included in the price). Last year’s event drew 30 restaurants that put their best menus forward for $29 or $39. Many of this year’s participants are repeat performers.

One of the new initiatives for this year’s edition is the promotion of sustainability — each menu will include at least one dish made with local ingredients. This year the event is added to the Diageo World Class platform, offering a variety of cocktails made with luxury liquors at selected restaurants.

The two-week event is expected to increase revenue for participating restaurants and help the local economy during the offseason, organizers said Tuesday.

“In addition, Puerto Rico Restaurant Week is an incentive for tourists to visit the island and take advantage of the culinary offerings. In the near future, the event will attract a significant number of tourists through partnerships with hotels and airlines,” organizers said.

This year’s participating restaurants are: 1919, El Livin Bar & Restaurant, Oceano, Alexandra, El Picoteo de Tapas, O:liva Dieta Mediterránea, Bar Gitano, En Boga Gastrobar, Papillon Bistro, Bistro 606, Fern, , Perla, Bistro de París, Jam Rum Bar & Bistro Moderne, Santaella, Blonda, La Chola, Santorini, Budatai, La Vista Latin Grill, Sirena, Café la Plage, Las Palmas, The Condado Cantina, Casa Lola, Laurel, The Eclipse, Casita Miramar, Lemongrass, , The Garden, Cocina Abierta, Mango’s, Ummo, di Parma, Morton’s The Steakhouse, Zest, Di Zucchero, and Nonna Cucina Rústica.

For more information on menus and reservations, visit www.PRrestaurantweek.com.

Aerostar Holdings CEO Agustín Arellano discusses how things are going so far at LMM. (Credit: © Mauricio Pascual)

Despite not having yet completed the transition through which it will officially take over control of the Luis Muñoz Marín International Airport in Carolina, Aerostar Holdings is already planning major changes for services available to passengers, mostly related to concessions and transportation.

During a meeting with the media after speaking before the Puerto Rico Hotel and Tourism Association Thursday, Aerostar CEO Agustín Arellano also confirmed that there are talks already underway to re-establish direct flights between San Juan and Mexico, with two airlines interested in offering the service.

Since signing the 40-year lease, Aerostar has been in talks with airport concessionaires to sort out which would stay and which would go.

“There’s a bit of everything going on. When there are changes, some will be favored and some won’t because contracts have long expired for some, while for a long time, others didn’t pay anything and will now have to pay,” Arellano said, noting Aerostar’s strategy calls for sharing profits with concessions rather than collecting lease fees for the space they take up at the airport.

“The modern way of operating an airport does not entail renting areas. The modern way of running an airport is by partnering in everything. We partner with the retailers to select the best options, based on what the passenger wants, not the business the person wants to set up,” he said. “The idea here is to accommodate all of those who have a contract in place.”

At present, there are 122 concessions operating at the LMM, and the goal is to increase that to 160. The retail outlets are organized under several umbrellas: food and drink concessions are under International Meal Co.; duty free shops are under Dufry; and retail shops are managed jointly between the owner and Aerostar.

“But they will be distributed differently than how they are now,” he said.

That’s because starting in November, Aerostar will begin remodeling the airport, requiring full areas to be shut down and tenants relocated. The first area to undergo physical changes will be Terminal B, which will be shut down and its occupants will be moved to Terminal D, which is currently empty.

The entire airport makeover will take about a year, he said. The private operator has already begun some of the work, such as changing signs along the roads leading to the terminals and back toward the exits, as well as improving bathroom conditions.

Ground transportation and new airlines
Meanwhile, he addressed the issue of ground transportation, which at the airport is offered by taxis, private transportation and car rental companies.

Mexico’s MagniCharters is one of two airlines that could start offering direct flights between San Juan and Mexico City.

“We’re going to regulate what has to do with pre-paid transportation, limos and VIP services,” he said. “All of the transportation elements have been self-regulating in an irregular way, not according to how they should operate based on airport standards, so we’re going to have to work on that.”

Taxis are excluded, as the government has jurisdiction over that service.

In the reorganization, Arellano again said there will be no rate hikes, as Aerostar will also participate as partners in the transportation business.

Finally, Arellano said Aerostar is already in talks with several new airlines in Mexico to re-establish direct flights between San Juan, Mexico City and Cancún. Two carriers — MagniCharters and InterJet — would offer the service.

“International flight require agreements and the Federal Aviation Administration’s approval, and we’ve already submitted the application to them to allow those flights to begin,” Arellano said.

Southwest will launch cargo services to San Juan in about two weeks.

The airlines successfully completed connectivity of the two networks earlier this year, opening up more destination options and reaching more potential customers, Southwest executives said Thursday.

Southwest will join the roster of companies already offering cargo services to Puerto Rico: United Parcel Service; Federal Express; DHL; Amerijet; Four Star Cargo; Roblex; and the U.S. Postal Service.

Connectivity of the carriers’ networks means hundreds of new flights and 68 new nonstop markets for cargo customers to experience the Southwest Airlines Cargo service.

“Connecting the Southwest and AirTran Networks opens up a number of opportunities for our cargo service to grow, offering new flights and significant increased capacity for our cargo customers,” said Matt Buckley, Southwest Airlines vice president cargo & charters.

“It’s a testament to the success of the AirTran acquisition, and we’re excited to offer expanded service to our existing Customers and introduce our product to new ones,” he said.

Now, Southwest Airlines Cargo not only can connect through Southwest-to-AirTran flights, but also through AirTran-only or AirTran-to-AirTran flights. Customers can track their shipments on Southwest Airlines and AirTran Airways though swacargo.com or by using Southwest’s GPS tracking device, “Cargo Companion.”

Southwest Airlines Cargo will continue to offer more destinations as the integration of AirTran Airways continues, with completion anticipated in 2015.

The new cargo service will launch less than a month after Southwest’s debut in the local market to offer direct flights several times a week between San Juan and Orlando and Tampa Bay.

Danilo Correa, commercial director for Avianca’s Mexico, Central America and Caribbean division speaks, as Gov. García-Padilla and Alejandro Cobos, Consul General of Colombia in Puerto Rico look on. (Credit: La Fortaleza/ Alex Rafael Román)

Colombia’s flagship airline, Avianca, will mark its return to the Puerto Rico market after a 12-year absence with a direct route between San Juan and Bogotá starting July 17, company and government officials confirmed Tuesday.

The carrier will initially connect Luis Muñoz Marín’s International Airport and Bogotá’s El Dorado International Airport three times a week, with plans to launch more flights to other Colombian cities in the future, said Danilo Correa, commercial director for Avianca’s Mexico, Central America and Caribbean division, during a news conference held at La Fortaleza.

“San Juan is well known for its tourist attractions, as well as for being a major industrial, commercial and cultural hub,” Correa said. “We’re confident that our passengers will welcome this new option in Avianca’s route network.”

“Meanwhile, we offer to Puerto Rico access to destinations with great tourist and business potential, starting with Bogotá, one of the cities in Latin America with the most economic and social development,” the Colombian executive noted.

With its arrival, Avianca will create 160 new jobs and generate an economic impact of between $150 million and $180 million a year, Gov. Alejandro García-Padilla said.

To kick off the new service, Avianca will offer a special $550 round-trip fare, which represents a significant savings for the trip’s average $800 cost. Furthermore, the direct route will eliminate the need to connect either in Miami, New York or Panamá — where most connections between San Juan and Bogotá take place — cutting back on the time it takes to travel to the South American capital city.

Once in Bogotá, passengers can connect to most major South American cities Avianca serves, which García-Padilla said responds to the current administration’s strategy to “establish tourist exchanges with Brazil, Chile and other countries in Latin America.”

Avianca is the first Latin American airline to enter Puerto Rico in more than a decade. Its decision to return was based on several factors, Correa said.

“We felt we had the government’s support, because an airline cannot enter a market without that. Avianca today is fundamentally superior in terms of connectivity thanks to the StarAlliance to which we belong, which makes the business opportunity viable, and thirdly, a world-class airline such as Avianca cannot exclude a world-class destination such as San Juan from its network.”

Avianca was accepted as an official member of the Star Alliance in June 2012.

Avianca pulled out of the Puerto Rico market in 2001 for several reasons, including a lack of government support at the time and its own internal corporate issues, he noted.

To help Avianca get started in the San Juan market, the Puerto Rico Tourism Company has agreed to provide $300,000 in incentives for advertising and other investments related to getting them set up at the airport.

There are an estimated 12,000 Colombian nationals living in Puerto Rico and a total of 25,000 island residents who travel to Bogotá each year on airlines currently offering connecting services, said Alejandro Cobos, Consul General of Colombia in Puerto Rico.