EscucharSAN JOSE - The U.S. Department of Transport is about to give its verdict on the Agreement of Shared Code made by American Airlines and the Taca Group (of which Lacsa, Costa Rica's only international airline, is a part), amid opposition from other companies, who claim that the agreement will mean a monopoly.
According to an article from The Miami Herald, published February 16, this alliance --agreed upon in July 1996-- could heat up the competition between the U.S. airlines that provide services to the Central American region. The alliance could be approved as early as next week.
The Official Spokesperson for American Airlines, Martha Pantin, told the daily La Nación --via telephone from Miami-- that the agreement is seeking to benefit both the U.S. city's airport and Central American citizens, who will have access to a wider choice of destinations.
United Airlines' General Manager in Costa Rica, William Rodríguez, and his counterpart at Continental Airlines, Salvador Marrero, assured that if this agreement is approved it would precipitate a situation in which American and the Taca Group (made up of Taca from El Salvador; Aviateca from Guatemala; Lacsa from Costa Rica; and Nica, from Nicaragua) would have a monopoly. The merger between the two companies would give them control of almost 90 percent of the market to Miami.
The agreement would allow a passanger of a Taca airline to travel to any destination in the U.S. (via American's connections) buying the same ticket, which would imply another agreement between the companies; in what respects the flights' timetables.
Five U.S. airliners officially opposed the agreement through the Department of Transport, among them United, Continental and Delta.
Discord
Pantin added that the other companies cannot oppose this agreement if it is taken into account that American Airlines has 112 weekly flights to Central America, the same number as Continental Airlines. She also said that the agreement would allow the isthmus' companies (of the Taca Group) to expand into the U.S. and the Carribbean.
Rodríguez however, said yesterday ``United Airlines' position has been very clear, because American and Taca posess more than 80 percent of the Miami market to Central America, and if they are allowed to sign an agreement they would have a monopoly.''
In the past months, the U.S. transport authorities have asked opposing airlines to give their arguments in order to have the proper elements to judge whether the agreement should take place or not and take a decision, said Rodríguez. ``If the merger between Taca and American Airlines, who has a very great presence in the region, comes through, a monopoly would be created. We do not fear competition, but we do ask that competition takes place on equal terms,'' said Marrero of Continental Airlines.
We tried to discover the position of the Vice-President of the Taca Group and President of Lacsa, José Guillermo Rojas, but the General Manager of Public Relations, Mario Cordero, assured that he was out of the country and that he will be returning on Wednesday.
