Copa Flights from David

Airlines dog fight over flights to Chiriqui ^Featured

THE COPA Airlines plan to start twice daily flights from Tocumen to the Enrique Malek Tocumen International Airport in the city of David on January 8, flouts a 2003 law stating that 60% of the shares of the companies providing the service of air transportation in Panama must be owned by nationals, say the directors of Air Panama.

The local airline that has been providing the only flights to Chiriqui, on a route that covers 51% of Panama’s internal flights is facing a battle with a company that earned over $300 million in the third quarter of this year.
Eduardo Stagg, CEO of Air Panama, says he will ask the courts to enforce compliance with the law, reports La Prensa.
In affidavit delivered October 28,2014 to the Civil Aviation Authority (CAA), PedroHeilbron, CEO of Copa Airlines, stated that 99.7% of the shares of the company are owned by Copa Holdings, and represents at least 60% of the votes issued to Panamanian nationals.
Heilbron said that the entire board of Copa Airlines Panamanian consists of individuals,and that 8 of the 11 members of the board of Copa Holdings are Panamanians.
Stagg says that the information provided does not reflect the reality of the company. Documents given in 2013 to the UNITED States SEC as part of the rules for trading on the NYSE.
At that time the company declared that less than 50% of the shares were held by nationals.
According to Stagg, Copa could pretend to rely on the decree 542 of 2005 issued by the president Martin Torrijos, which regulates Article 79 of Law 21.
This regulation states that to operate in Panama, 51% and not 60% of the shares must be owned by nationals. But "a decree cannot supplant a law," Stagg said

A Copa spokesman told La Prensa that the company delivered all documents required by national regulations and ensures that they meet all the requirements of the law
However, according to Stagg, several rules are in breach of their entry into the domestic market.
Fuel clause, whose incorporation is mandatory in arate that is offered to customers. Copa , meanwhile, has not included it in their rates as published on the website
The airline asked the AAC that approve a package of four rates ranging from $150 to $400 for a round trip ticket to David, Chiriqui.
In its request, Copa said the new offering will alleviate complaints that passengers have only one option to fly to Chiriqui, and that the proposed PRICES are within the range used by Air Panama.
It adds that they do not represent ruinous competition in the market.
The prices offered by Copa are $100 below the current rate of Air Panama on its flights to David.
Stagg believes that the only purpose behind these fees is to get the Air Panama market. "And once this is achieved, then prices will rise."
Why would Copa be interested in making this move? According to Stagg it is revenge for the entry of Air Panama to Medellin, Colombia, one of the main markets for Copa.
"They have been characterized as having the highest prices in the region, and now want to be the champions of justice in Panama. Obviously they want to kill the competition, "Stagg said.
According to calculations by Air Panama and based on projections of occupation, with rates offered by Copa, the company will lose about $ 7 million a year, which would be distributed in its 71 destinations out of Panama.
The company expects an occupancy between 40% and 56% during the first year of operation to Chiriquí, using an Embraer 190 aircraft with a capacity of 94 passengers.
Stagg says the ending of competition would lead to disregarding the routes to Bocas del Toro, Guna Yala and Darien by Air Panama and nobody cares because they are not profitable.

Replies

Bonnie Williams December 18, 2014 at 8:29am

Airlines dog fight over flights to Chiriqui ^Featured

THE COPA Airlines plan to start twice daily flights from Tocumen to the Enrique Malek Tocumen International Airport in the city of David on January 8, flouts a 2003 law stating that 60% of the shares of the companies providing the service of air transportation in Panama must be owned by nationals, say the directors of Air Panama.

The local airline that has been providing the only flights to Chiriqui, on a route that covers 51% of Panama’s internal flights is facing a battle with a company that earned over $300 million in the third quarter of this year.
Eduardo Stagg, CEO of Air Panama, says he will ask the courts to enforce compliance with the law, reports La Prensa.
In affidavit delivered October 28,2014 to the Civil Aviation Authority (CAA), PedroHeilbron, CEO of Copa Airlines, stated that 99.7% of the shares of the company are owned by Copa Holdings, and represents at least 60% of the votes issued to Panamanian nationals.
Heilbron said that the entire board of Copa Airlines Panamanian consists of individuals,and that 8 of the 11 members of the board of Copa Holdings are Panamanians.
Stagg says that the information provided does not reflect the reality of the company. Documents given in 2013 to the UNITED States SEC as part of the rules for trading on the NYSE.
At that time the company declared that less than 50% of the shares were held by nationals.
According to Stagg, Copa could pretend to rely on the decree 542 of 2005 issued by the president Martin Torrijos, which regulates Article 79 of Law 21.
This regulation states that to operate in Panama, 51% and not 60% of the shares must be owned by nationals. But "a decree cannot supplant a law," Stagg said

A Copa spokesman told La Prensa that the company delivered all documents required by national regulations and ensures that they meet all the requirements of the law
However, according to Stagg, several rules are in breach of their entry into the domestic market.
Fuel clause, whose incorporation is mandatory in arate that is offered to customers. Copa , meanwhile, has not included it in their rates as published on the website
The airline asked the AAC that approve a package of four rates ranging from $150 to $400 for a round trip ticket to David, Chiriqui.
In its request, Copa said the new offering will alleviate complaints that passengers have only one option to fly to Chiriqui, and that the proposed PRICES are within the range used by Air Panama.
It adds that they do not represent ruinous competition in the market.
The prices offered by Copa are $100 below the current rate of Air Panama on its flights to David.
Stagg believes that the only purpose behind these fees is to get the Air Panama market. "And once this is achieved, then prices will rise."
Why would Copa be interested in making this move? According to Stagg it is revenge for the entry of Air Panama to Medellin, Colombia, one of the main markets for Copa.
"They have been characterized as having the highest prices in the region, and now want to be the champions of justice in Panama. Obviously they want to kill the competition, "Stagg said.
According to calculations by Air Panama and based on projections of occupation, with rates offered by Copa, the company will lose about $ 7 million a year, which would be distributed in its 71 destinations out of Panama.
The company expects an occupancy between 40% and 56% during the first year of operation to Chiriquí, using an Embraer 190 aircraft with a capacity of 94 passengers.
Stagg says the ending of competition would lead to disregarding the routes to Bocas del Toro, Guna Yala and Darien by Air Panama and nobody cares because they are not profitable.
- Doug Johnson > Bonnie Williams December 18, 2014 at 11:28am
  
  I'm not a big fan of companies who try to squeeze out competition by using the government. That's crony capitalism at best, and very anti-consumer.
  
  The market wants a Tocumen-Chiriqui connection, and instead of trying to provide it, Air Panama is seeking to block it.
Judi P December 17, 2014 at 10:02am

Here's the link to the baggage policy:

http://www.copaair.com/sites/cc/en/informacion-de-viaje/pages/condi...
- Nanette Witmer > Judi P December 17, 2014 at 10:14am
  
  I have been told that this page is for international flights, not flights within Panama. I could be wrong though.
  - Joy > Nanette Witmer December 18, 2014 at 8:13am
    
    You can take more than 30# on Air Panama, you just have to pay the excess luggage fee.
    - Nanette Witmer > Joy December 18, 2014 at 8:19am
      
      Okay everyone, I heard back from Anavilma, this is what she said:
      
      The total weight Copa allows for bags is the same as going to South America, 32 kg. , its usually one bag of 23 kg + another of 9 kg but they have yet to clarify whenever its gonna be the same as going to south america, or the same as Air Panama being the total weight among all bags.
      
      So 32KG is 70 lbs.
      - PanamaRon > Nanette Witmer December 18, 2014 at 8:36am
        
        We have flown Copa from Washington Dulles to Panama city 5-6 times a year since they started that route a few years ago. Since this will be a connecting flight for us in the future (thank God it's finally going to happen), I find it hard to believe that Copa will not allow us to bring our 4 50# checked bags (2 per passenger) with us to David. The planes they are going to use will have sufficient room for that amount of luggage. But with that being said I will contact Copa today directly and get it direct from them.
David Rennie December 17, 2014 at 9:09am

I would guess that Anavilma could help you with that. She has computer access unavailable to others...
- Nanette Witmer > David Rennie December 17, 2014 at 9:16am
  
  Who is Anavilma? How can I get ahold of her?
  - David Rennie > Nanette Witmer December 17, 2014 at 9:30am
    
    Sorry, didn't mean to leave a mystery behind! ;-)
    
    She has the travel agency in Boquete. It is in the newer building just West of the main bridge.
    
    I have her email address as: Anavilma <vdavid@cwpanama.net>
    
    Hope that helps!