DR1 - Travel News - 22-26 May 2000

Travel News - 22-26 May 2000

Privatization board goes ahead with CDA bidding
Delta evaluates service to DR in 2001
United Airlines to purchase US Airways
JMC Air flies into Puerto Plata
Corde director wants to go ahead with airline privatization
Santo Domingo confirmed as site of 2003 Pan Am Games
3 million visitors forecast for 2000
Caribbean Tourism Organization chapter in DR
Mejía believes privatization state airline should be left to new authorities

Privatization board goes ahead with CDA bidding
The Public Enterprises Reform Commission (CREP) has announced that it will proceed as planned with the sale of the national airline company this coming May 30. Sealed bids for the bankrupt and inoperative Corporacion Dominicana de Aviacion (CDA) will be opened next Tuesday, despite the request of president-elect Hipolito Mejia to delay the sale until after he is sworn into office on August 16.

Justifying the decision, Eduardo Selman, director of CORDE, the state-run conglomerate that serves as a holding company for publicly owned companies, said that a delay might jeopardize the good will of investors and lead to a reversal of the US$62 million debt reduction that has been negotiated on behalf of CDA with its creditors. The accumulated debt of the airline - for unpaid fuel and maintenance bills, extra-national operating fees, and fines - was calculated at US$75 million. The new financial plan, providing for a continued 50% state ownership, assigns the remaining US$13 million debt between CORDE, the government and the airline's as yet un-selected operating partner.

Antonio Isa Conde, the head of CREP, invited Mejia to name a panel of experts from his own party, to monitor the transactions. However, he also defended the decision to proceed with the sale which, he said, was clearly grounded in law. The assets of the CDA, essentially its routes and its headquarters building in Santo Domingo, have been valued at US$14.8 million.
(26 May 2000)

Delta evaluates service to DR in 2001
Delta Airlines is evaluating service to the Dominican Republic in year 2001. Christine Frias, a spokesperson for the airline, says that the airline considers both Santo Domingo and Puerto Plata attractive potential opportunities. Delta Airlines announced only last week that it will be expanding its service to Latin American and Caribbean destinations. The airline has plans to provide service to 13 destinations in Latin America and the Caribbean with 19 daily flights. The airline highlights that this is the single largest international expansion in its history and that it is committed to the region. New points to be added are Mexico, Bahamas, Turks & Caicos, Trinidad, Barbados, Puerto Rico, and the company will be code sharing with Air Jamaica on flights to Jamaica.

"Delta is extremely excited about this additional service into Latin America and the Caribbean. We are looking forward to being a premier provider of U.S.-Latin America and Caribbean service," said Jorge Fernandez, director - Latin America. "Today we proudly offer service on our own aircraft and those of our codeshare partners to more than 50 destinations in 13 Latin American countries."
Delta Air Lines also recently announced having reached and agreement with Sol Meliá Hotels & Resorts to enable guests of these hotels to gain Delta SkyMiles. Sol Meliá operates several hotels in the Dominican Republic.
(25 May 2000)

United Airlines to purchase US Airways
The announcement that the boards of directors of United Airlines and US Airways have approved a merger agreement is good news for the DR. Latin America and the Caribbean stand to gain as it would increase the number of direct flights to the US and more alternative through Miami, according to United. Today one US carrier, American Airlines, basically controls traffic to the DR and there is a scarcity of seats.

For years now, United has announced its interest in the Dominican Republic, but flights haven't materialized. Just recently, US Airways announced it had filed with the US Department of Transportation for daily flights to Santo Domingo as part of a general Caribbean expansion plan. United's financial clout behind US Airways consolidates that airline as a major player for the Caribbean market. A US$4.3 billion cash purchase was announced.
The merger combines United's extensive east-west system with US Airways' comprehensive north-south routes, creating what promoters are calling the first truly efficient United States nationwide network and the world's largest airline.
Nevertheless, a Wall Street Journal story says that the merger was objected by the United Airlines pilot syndicate and could face opposition by groups that site a monopoly is being created. The merger, they say would concentrate 80% US travel in three major airlines, affecting competition and consumer interests.
For more information on the merger, see:
http://www.united.com/site/primaryPR/1,10026,1528_602,00.html
(25 May 2000)

JMC Air flies into Puerto Plata
The Listin Diario reports the start of flights to Puerto Plata of JMC Air. The charter airline flies from England with 361 passengers capacity. The airline born of Caledonian Airways and Flying Colours Airlines is the second largest charter airline of England. It has a fleet of 28 airplanes, averaging 3.5 years, covering destinations around the world, said JMC Air spokesman, Steve Young. It serves 11 routes in the Caribbean during the summer and winter, including Antigua, Bahamas, Cancun, Orlando, Tobago. The new flight is expected to contribute to the strengthening of the UK market to the DR.
(25 May 2000)

Corde director wants to go ahead with airline privatization
Eduardo Selman, director of the government holding company Corde, insists on finalizing the tender for the privatization of Dominicana Airlines (CDA). President-elect Hipólito Mejía requested that this tender be suspended. Selman told the Listín Diario that four companies had pre-qualified for the tender. He did not release the names of the companies. He said that the suspension of the tender set for 30 May would cause the state to benefit from negotiations that lead to the reduction of the millionaire debt of the airline.
The tender process is coordinated by the Commission for the Reform of Public Enterprises (CREP) which in the past suspended several of the processes.
(25 May 2000)

Santo Domingo confirmed as site of 2003 Pan Am Games
The Panamerican Sports Organization (ODEPA) confirmed Santo Domingo will be host city of the 2003 Pan American Games. The confirmation took place yesterday in Rio de Janeiro, Brazil.

The Dominican government's sale of the lot diagonally across from the Juan Pablo Duarte Olympic Center where the Olympic Village was to be built caused concern among members of the Pan American Games organization.
The DR government sold the site of the Olympic village last February, preferring to build low-rise apartments on a larger eastern Santo Domingo lot instead of 23-floor towers. Making matters more attractive, the new site is about 10 minutes from the Las Americas International Airport, main entry point for those coming for the games.
The government also informed the sports organization its decision to build two new sports centers on the eastern side of the city, both less than a 15-minute drive from the Olympic village. The JPD Olympic Center will be at most a 35-minute drive away from the village.
The Panamerican Sports Organization required the Dominican government serve as guarantor of the Games. At the Rio meeting, the Dominican government deposited a bail for US$25 million, as well as a letter from President-elect Hipólito Mejía confirming the new government's commitment to the Games.
(24 May 2000)

3 million visitors forecast for 2000
Minister of Tourism Felix Jiménez forecast that more about three million persons will visit this year. Visitors are expected to spend US$2,950 million on their Dominican sojourn. In a story featured in the Listín Diario, Jiménez forecasts that 2000 will be a great year for the DR tourism industry. He said arrivals were up 18% in the first four months of the year.
He announced the Ministry's participation in the Festival del Merengue 2000 that will take place in Central Park, New York on 9 June starting at 3 pm.
(24 May 2000)

Caribbean Tourism Organization chapter in DR
Reyson Pimentel is the president of the newly created Dominican Republic chapter of the Caribbean Tourism Organization. CTO is the leading tourism organization in the Caribbean.
Other members of the board are: Teddy de Lara, vice president; Miriam Cambiar, secretary; Fidelina Pimentel, membership director; Luisa Cabral, public relations; and Alexandra Victoria, director of the marketing. The Dominican chapter seeks to educate young Dominicans as to the importance of tourism. The CTO Dominican Chapter will start its programs with the implementing of the "Getting to Know Tourism" program in public and private schools nationwide, especially in areas that receive large numbers of tourists.
(24 May 2000)

Mejía believes privatization state airline should be left to new authorities
President-elect Hipólito Mejía says that he is opposed to the government continuing with the process to privatize Dominicana Airlines, the state airline. The privatization commission has pre-qualified two firms, one of these is a Venezuelan airline, and the other a previously unknown company.

Corde has announced the privatization of Dominicana for this May.
Mejía recommended that the Corde government holding company leave this privatization to the new authorities. He urged Corde to abandon what he called a "quickie privatization" now that the new government-elect is known.