Has Doing Business in Puerto Rico Become Unsustainable?

Lately, I've been looking at what's happening across different industries, and I can't help but wonder if we're overlooking a much bigger problem.

We've seen airlines struggle financially, some shutting down altogether, while others are doing everything they can to stay afloat. And this isn't just happening in aviation. Here in Puerto Rico, we've also seen the situation surrounding Encanto Restaurants and its franchise operations, including KFC and Taco Bell.

At first glance, these may seem like completely unrelated situations. But I think they point to a bigger issue: how difficult it has become to run a business and actually make money in Puerto Rico.

We spend a lot of time talking about attracting new businesses, bringing investment to the island, and creating jobs. All of that matters. But I think we're overlooking a pretty basic question: What does it actually take to keep a business running here?

Everything costs more. Electricity, insurance, payroll, supplies, fuel, maintenance. Meanwhile, customers are looking for cheaper options, and businesses are expected to keep lowering their prices just to stay competitive.

You see it everywhere. Restaurants offering their version of a $1 menu. Airlines competing to sell the cheapest ticket. And even in general aviation, where introductory flights are being advertised for $99.

I understand the appeal. Everyone wants a good deal. But at some point, we have to ask ourselves whether the price we're paying actually reflects what it costs to provide that service.

Take a $99 introductory flight. It sounds like a great offer, but have we really considered what goes into providing that experience? There's fuel, maintenance, insurance, inspections, aircraft wear and tear, instructor time, and all the other expenses that come with operating an aircraft.

When you actually run the numbers, it's hard to make that work as a sustainable business model.

And someone eventually has to absorb the difference. The owner takes the loss, the company burns through its reserves, or the business eventually reaches a point where it can no longer afford to operate.

In aviation, this becomes a much bigger concern.

We can negotiate better contracts, improve efficiency, and find smarter ways to manage operating costs. That's part of running any business. But there are certain things we simply cannot cut corners on.

Maintenance is one of them.

When financial pressure starts influencing maintenance decisions, delaying necessary work, or limiting the resources available to support safe operations, we're entering territory that deserves serious attention.

I'm not suggesting that recent aviation accidents were caused by maintenance cuts. Those conclusions belong to the investigators. But I do think we need to recognize the relationship between a company's financial health and its ability to maintain a strong safety culture.

And this isn't just about major airlines. It applies to flight schools, charter operators, maintenance facilities, and small aviation businesses too.

I've always believed that aviation should be more accessible. We want more people flying, more students entering the industry, and more opportunities for people to experience aviation. But making aviation more affordable shouldn't mean creating a business model that simply doesn't work.

We can't expect to buy safety at a discount.

I think this is something worth discussing within PRBAA and across the broader business community.

Puerto Rico has a lot going for it when it comes to aviation and aerospace. Our location, our workforce, and our potential to serve as a regional hub create real opportunities. But attracting companies is only part of the equation. We also need an environment where those companies can actually operate, remain profitable, and grow.

Maybe we're spending too much time talking about how to bring new businesses to Puerto Rico and not enough time asking why so many businesses are struggling to stay.

I don't think this is simply about companies making bad decisions or consumers wanting cheaper products. It's about looking at the bigger picture and understanding whether the cost of doing business on the island has reached a point where it's becoming increasingly difficult to make the numbers work.

And perhaps that's the conversation we should be having.

Because when a business closes, it's not just a company disappearing. It's jobs, services, investments, and opportunities that go with it. And in aviation, when the financial pressure starts affecting decisions that should never be compromised, the consequences can be much greater.

We can't keep asking people to invest in Puerto Rico, create jobs, and build businesses without also looking at the conditions we're asking them to operate under.

At some point, we have to ask ourselves: Are we making it too expensive to do business in Puerto Rico? And more importantly, what are we prepared to do about it?