Citing high operating costs and the increase in the airport tax, the low cost airline VivaColombia has announced that it will stop flying between Panama and the cities of Bogotá and Medellin.

Through a statement, the airline reported that “… VivaColombia, the first low cost airline in the country, announces that it will cancel its Bogota-Panama-Bogotá and Medellín-Panama-Medellín routes as of May 20, 2018. This decision is made taking into account the high operating costs and the increase in the airport tax which went from $15 to $35, representing an increase of 135%.“

In this regard, the president of the Panamanian Hotel Association (Apatel), Armando Rodríguez Tatis, said that for the sector ” … represents a setback for tourism that ‘will reduce our competitiveness’. ” 

Laestrella.com.pa reports that, in the view of Rodríguez, this situation “ … is very bad news for Panama because it will affect prices and if coming to this country cost a a lot before, now the results will be worse.“