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.