Impact of TAM-LAN merger on Panama

The country is predicted to face tough competition from the new airline giant with operations across South American skies.

Tuesday, August 17, 2010

Juan Carlos Pino, general manager of Panama's Tocumen International Airport, believes the merger of TAM and LAN poses a threat.

"Separately, TAM and LAN have focused on their niche markets - Brazil to Europe and South America respectively. However, Pino's view is that once the airlines' operations are consolidated they will be able to compete for passengers currently travelling via Panama to make connections toward North America, the Caribbean or Europe," reports Prensa.com.

More on this topic

Panama: Dispute Over Local Air Market

December 2014

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.

Competition Law in the European Union

January 2013

The Association Agreement with the EU will involve the creation of a regional body for the implementation of regional competition policies.

From the newsletter of the Costa Rica’s Commission to Promote Competition (COPROCOM):

The single market is one of the greatest achievements of the European Union.

Blessed be Competition ... On the Ground and in the Air

July 2012

Thank you Interjet and Aeromexico for making it possible to buy a ticket without feeling like you have been robbed at gunpoint.

As was the case in other Central American countries with the opening of flights operated by companies outside of the isthmus, in Costa Rica, airline ticket prices for flights from San Jose to Mexico City have fallen by 60%.

Welcome Competition: TACA Lowers Fares

June 2011

Being the sole operator of the Guatemala - Mexico route, TACA was able to charge more than $700 a ticket. Now that Aeromexico and Interjet have arrived, prices have fallen to less than half that price.

Last week the Mexican low-cost airline Interjet announced two daily flights between Guatemala City and Mexico City from July, with rates from $249 roundtrip including taxes.

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