The high cost of operating Dominican airline companies, due to excessive taxes and the fact that many costs must now be paid in US dollars, could soon mark the demise of the fledgling Dominican aviation industry, according to a report in El Caribe today. Isabel Patin, of Servicios Aereos Profesionales, says that company yields are at a minimum because airfares are sold in pesos, while aviation companies must pay their operating expenditures in hard currency. Patin complained that while the US government assists aviation in the US, by contrast the Dominican government has raised taxes on airfares at a time when airport charges already make up a significant portion of airfares. The result makes travel very costly for Dominicans, reducing sales.
Patin told reporter Denisse Cepeda that the additional charges augment fares by over US$100 each.
Among the additional charges to which she referred are: the 12% ITBIS (VAT) on the cost of the ticket, the US$24 governmental Civil Aviation Board charge, the US$26 to Aerodom (private airport operators), the US$20 departure tax, the US$10 airport security charge and the US$45-US$48 US security and airport fee.
Patin also mentioned growing competition from new airlines flying to the Dominican Republic, such as JetBlue and Delta on the New York routes and Dutch Caribbean Airlines from Miami.
Local aviation companies have also protested their ousting from the Herrera International Airport this 9 July to the San Isidro military airbase.