Airlines association supports open skies agreement with the US
After the charge d’affaires of the United States Embassy in the country published an opinion article highlighting the benefits that the signing of an open skies agreement between his nation and the Dominican Republic would bring, the Dominican Association of Airlines (ADLA) insists that, before an agreement of this type -which he supports-, Quisqueya must have a law to promote civil aviation.
“Everything mentioned by the charge d’affaires of the American Embassy is correct”, said Omar Chahin, president of the ADLA,
“With an open skies agreement many good things can come for foreign airlines, but not for Dominican airlines.”
On October 13th, the Charge d’Affaires, Robert Thomas, indicated in his article that, under an open skies agreement, airlines can offer more affordable services, by minimizing the limitations in decisions on routes, number of flights and alliances. . Dominican women would no longer have restrictions on where they can fly to in the United States and travelers would be able to enjoy new flight options.
However, Chahin observes that, currently, Dominican airlines are in a tax regime “much superior economically” to the one that foreign airlines operate in the United States. “Then, if we approve an open sky without any type of compensation for Dominican airlines, without any type of equality with the taxes paid by foreign airlines, then we would be competing in a very great inequality,” he insisted.
The also CEO of Air Century summarized that the law he advocates should abolish taxes and reduce others paid by local airlines, including the 1% tax on fixed assets and 27% for payments abroad; the tax on credit cards for using a foreign processor, 18% from Itbis and the fuel tax.
On September 12, President Luis Abinader said that the negotiations to sign the open skies agreement are advanced, and the process could be completed in about 60 days. He announced the submission to the National Congress of the long-awaited promotion bill for the local aeronautical sector, but this has not yet come about.