Panama: Dispute Over Local Air Market


News from Panama / Tuesday, December 30th, 2014

air-panama-boeing-727-100-fsx2  copa-airlines-737

Copa Airlines is venturing into the local market flying a twice daily route between Tocumen and David with rates $100 cheaper than those of Air Panama, which is being threatened by the international airline.

51% of local air traffic is represented by the internal route between Panama and David, which until now was serviced only by the airline Air Panama, but soon the business will be shared with Copa Airlines, which requested authorization to operate the route with two daily flights.

Prensa.com reports that “… the directors of Air Panama have indicated that Copa Airlines is not in compliance with Article 79 of Law 21 of 29 January 2003 regulating civil aviation in the country.
This article states that 60% of the shares of the companies providing the service of air transportation in Panama must be owned by nationals. And in the view of Eduardo Stagg, CEO of Air Panama, Copa does not meet this requirement. ”

For its part “… Copa said the new service will alleviate complaints that passengers only have one option for flying to Chiriqui, and that the proposed routes are within the range used by Air Panama. He added that they do not represent ruinous competition in the market. ”