SANTO DOMINGO– During his weekly press conference, held every Monday at the National Palace, President Luis Abinader announced the arrival of two new airlines to the Dominican market, which, according to him, will boost competition and reduce the cost of flights for Dominicans.
“I can tell you, without naming names, that two more new airlines are coming because of the incentives we have given them,” said Abinader, who maintained that “the most important thing is the tax incentives we have given to new private airlines so that they establish themselves in the country, not simply so that the ten dollars can be refunded, but so that they can compete with American airlines, so that, like in other Latin American countries, these new airlines have the possibility of offering fares up to 50% lower than traditional airlines,” he explained when answering questions about the $10 tax.
“I don’t want it to be reduced by $10, I want it to be reduced by 50% for travel to the United States, and it can be reduced by competing with other agencies,” Abinader said.
He explained that since the beginning of his administration he has implemented measures favorable to Dominicans living abroad, and for this purpose they have developed programs for the reimbursement of the tourism tax and the creation of new airlines.
The president indicated that under his administration, measures have been taken to expedite the $10 refund process, either digitally or through a BanReservas branch.
"Since we came into government, we have implemented several measures so that anyone in the U.S., anywhere, who wants to get their ten dollars back, can do so in 5 minutes, even digitally, or physically through the branches of the Reserve Bank.".
The $10 fee that Dominicans pay when buying their airline tickets to visit the country was a measure imposed by decree in the government of former President Danilo Medina, which has been the subject of debate and questioning by the Dominican diaspora and society.
Abinader also highlighted the opening of the US market to Dominican airlines as an opportunity to foster competition. He mentioned Skyhigh, which already flies to the US, and Arajet, which has requested seven or eight routes to the US that are still under review by the country's authorities, "which are not easy... in terms of permits," the president emphasized.
In October of last year, President Luis Abinader enacted Law 57-23, which establishes a tax incentive regime for national and international commercial civil aviation.
The objective of the law is to foster and increase the competitiveness of civil aviation in the Dominican Republic, promote the increase of visitors by air and establish new domestic and international routes to and from strategic markets.
Furthermore, it seeks to strengthen the Dominican Republic's position as a connection point for passenger and cargo transport, trade, and international investment.
