Leading journalist Minerva Isa, writing for Hoy newspaper, shows how the Dominican Republic’s open skies policy has evolved into an “oligopolistic stranglehold” on airfares in the country. Some airlines that operate as “low-fare” carriers in the United States have increased fares to and from the Dominican Republic to the point that it can be less expensive to travel by the really inexpensive carriers such as Spirit Air to New York and then fly to Europe than it is to fly to New York on Jet Blue. Fares for as much as nearly US$1,500 for round trips to New York City on Jet Blue and US$1,900 to fly to Madrid are commonplace today. According to the reporter the secretive and excessive fare increases were in the range of between 50% and 60%, and have destabilized the national airfare market.
In a long article, Isa traces the background of the open skies policies and the resulting collusion by the airlines to maintain their high fares. She noted that up until April there was at least the appearance of competition between the airlines, but with the withdrawal of Iberia and American Airlines, the carriers were reduced to basically just two or three: Air Europa to Madrid, and Jet Blue and Delta to New York City. These airlines increased their number of flights, but also their airfares. Airfares to Puerto Rico now cost more than flying to Miami.
www.hoy.com.do/el-pais/2013/8/6/493045/Alzas-desmesuradasevidencianmonopolio-de-aerolineas-enmercado-aereo