Canal country Panama's sky ways set to be opened wide

The Ministry of Land, Transport and Maritime Affairs of the Republic of Korea (Minister: Kwon, Do-Youp) announced that an agreement was reached on the liberation of air transport where operation frequencies and flight models are not restricted when transporting passengers and cargoes between the two countries at the Korea-Panama Aviation Conference held in Panama City on June 20, 2012.

Among Latin American countries, Chile, Peru, Mexico, Brazil, Ecuador, and Paraguay already signed open skies agreements.

This Open Skies Agreement will facilitate people-to-people and goods exchanges between the two countries by laying the foundation for opening up routes in Panama by Korean aviation companies.

Establishment of aviation networks in Latin America is a treasure trove for natural and tourism resources that will be further boosted by this agreement. Currently, Korean aviation companies operate only one Latin American route in Brazil three times a week.

In particular, this conference reached an agreement to allow, without restrictions, the fifth freedom by which an aviation company is entitled to pass through a third county, in view of the fact that it is difficult to open a direct route due to the as yet immature market environment and long operation distance between the two countries.

As the two countries agreed to give permission to the code-sharing on an autonomous basis to their aviation companies, even before a Korean aviation company directly opens up a route to Panama, Korean passengers would be able to enjoy a comfortable journey by using an air ticket issued in the name of a Korean aviation company.

In particular, even when Korean passengers use a Panamanian aviation company that carries out code-sharing with a Korean aviation company, their mileage is accumulated towards their accounts with the Korean company, which will further promote passenger convenience.

Panama is rising as a hub of international trade, logistics, and finance connecting the Atlantic to the Pacific, and North America to Latin America, based on such means as promotion of the Colon free trade zone, and expansion of the Panama Canal (set to be completed in 2014).

As of late, Panama is being dubbed the "Dubai of Latin America," boasting ample potential as an aviation market, which creates positive prospects for Korean aviation companies operating direct flights in the years ahead, said an insider at the MLTM. < Korea Shipping Gazette >