Reporting for Caribbean Business last week, John Collins wrote that Pan American World Airways may purchase Carnival Airlines, the eight-year old airline that is 90% owned by Carnival Cruise Lines. The purchase would expedite APA International of the Dominican Republic resuming its flights, following the announced merger with Pan American. Reportedly, the acquisition removes the necessity of Pan Am obtaining an operating certificate from the U.S. Department of Transportation as Carnival already has 26 aircraft flying.
The acquisition is said to complement the recently concluded alliance between Pan Am and APA International Airways, which provides access to Latin American, Caribbean and European destinations. The yet-to-be-announced deal between Carnival and Pan Am, like the one with APA, is seen as being mutually advantageous for both carriers.
“What Pan Am gets by acquiring Carnival is an instant, operating, quarter-of-a-billion-dollar-airline – that will put it in business right away,” Roberto Booth, an aviation industry commentator in Miami is quoted as saying. Micky Arison, the principal owner of Carnival Air explained, “The difference between Pan Am and Carnival is that we are a leisure company, while Pan Am is a corporate name that should attract corporate customers.” Now sources say that Pan Am-APA could be flying by September.
The merge of Pan Am and APA International is important news for the tourist industry as it is expected to add large numbers of seats at prices competitive with those being offered by regular carriers to U.S. tour operators in Puerto Rico and other important Caribbean destinations.