Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

0:00
0:00

Air Panama asks for help to continue operating

The airline expects to resume operations in June this year, starting with the three routes with the highest demand on its domestic flights.
The Panamanian domestic airline, Air Panama, has requested support from the Government to be able to resume its operations once the quarantine restrictions for the coronavirus are lifted.

Air Panama lost $5 million during the first 45 days of the pandemic, when quarantine measures were applied.

Eduardo Stagg, general manager of Air Panama, said that the support they request from the National Government is not necessarily monetary.

The airline seeks to find payment arrangements for some of its outstanding bills for fixed rates.

Stagg mentioned that this aid consists of an extension of the landing fee, office rent, among other things that are paid to the Civil Aviation Authority to resume and maintain the operation.

Restarting operations

Stagg indicated that they plan to restart with flights to the cities such as David, Changuinola and the province of Bocas del Toro and then with the rest of the routes.

"The government is working on a program to incentivize domestic tourism, which can help the Panamanian airline", Stagg said.

The airline flies to 14 destinations locally such as Chitré, Isla Contadora, Isla San José, Playón Chico, Achutupo, Ogobsucum, Mulatupo, Puerto Obaldía, Bahía Piña and Jaqué, those already mentioned and off-border to San José, Costa Rica.

"We are planning to start operating from June 1 to 15 and call in the personnel, but everything will depend on the behavior of the health crisis", Stagg said.

Regarding international flights, according Stagg they are waiting for Costa Rican authorities to resume operations.

A month ago the company announced to that it had lost between $5-6 million so far since the begging of the suspension, so they foresee that this figure will increase, although Stagg did not specify the amount.

The airline that employs some 315 people, of which 25 are pilots, did not disclose the exact number of suspension of contracts, but Stagg did say it is the majority. While, another group continues to work to maintain a fleet of 11 aircraft.

According to a report by the International Air Transport Association (IATA), a loss of air transport revenue in Panama is estimated at $681 million, while globally the number will be close to $250 billion.

In addition, the report indicates that the air transport sector contributes significantly to the economy of Panama and with the crisis the GDP at risk amounts to $820 million, while 12,000 direct jobs and 126,000 indirect jobs are at risk as a result.

The international body also predicts that travel restrictions last for three months, and that a gradual recovery is expected later in the third and fourth quarter of the year.

IATA also pointed out that the Government of Panama could consider some measures to alleviate the sector, such as waiving charges for aircraft parking at Tocumen International Airport given the closure and eventual reduction of operations, temporary postponement of the payment of the dividend that Tocumen SA pays the National Treasury, or formulate policies and incentives that allow the airline industry to access credit facilities.

The economic reactivation in Panama will be done gradually, and the air transport sector is in the fourth block, which has no restart date as of yet authorities said.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
×