General Aviation Matters
General
1. Which bodies regulate aviation in your country, under what basic laws?
All aviation activities are supervised by the Civil Aeronautics Authority (CAA), entity under the competence of the Ministry of Government and Justice of the Rep of Panama.
The CAA exists and operates in accordance to the powers granted by means of Law 22 of January 29th, 2003.
All civil aviation activities are considered and defined under the framework of Law 21 of 29 January, 2003.
Regulation of aviation operations
2. How is air transport regulated in terms of safety (ie, regulation of operators, aircraft, operations, crew, maintenance, air traffic control)?
The AAC of Panama supervises and grants all operational permits and safety related to operators,aircraft operations, crew maintenance ,air traffic control.
Within the AAC there are a number of departments which individually supervise all activities related to safety and operations. The Republic of Panama is signatory to a number of International Civil Aviation Treaties and Agreements, such as the Chicago Convention; the AAC follows the recommended Chicago Convention standards as per its Art 37 and it is also participant to ICAO. All international standards for safety are reflected in the Civil Aviation Regulations(CAR) of the Republic of Panama, document which complements all civil aviation activities considered in Law 21 of2003.
3. What safety regulation is provided for air operations that do not constitute public or commercial transport (eg, private operations and aerial work), and how is the distinction made?
Law 21 of 2003 defines such services in its Title VI, aerial works as per art 72 and 93 constitutes a commercial operation that does encompass any other civil aviation activity which does not comprehend transportation of passengers or goods and cargo.
Private flights or operations are such that will not be provided for a commercial purpose or for valuable consideration.
4. Is access to the market for the provision of air transport services regulated (otherwise than from the safety point of view), and if so how?
Yes, Commercial activities for civil aviation services are regulated by Law 21 of 2003, Title VI and Civil Aviation regulations (CAR), which establishes distinctions for operations within the territory of Panama as well for those related to international aviation.
5. What requirements apply in the areas of financial fitness and nationality of ownership regarding control of air carriers?
AAC Law 21 and its regulations demand financial fitness and technical capacities for all carriers applications.
For commercial operations provided within the territory of the Republic of Panama a minimum of 60% of ownership should be owned by Panamanians within the time of existence of the operation.
For operations for companies created in Panama to provide international services the minimum of Panamanian ownership shall be 51%. As per Art 79 of Law 21 of 2003.
6. What procedures are there to obtain licences or other rights to operate particular routes?
Book XV of Panama Civil Aviation Regulations, prescribes the rules and requirements for approval of routes and for certification of a licensed carrier, whether conducting operations within the Republic of Panama or internationally.
The Republic of Panama maintains a number of bilateral and multilateral aviation treaties which shall be considered when applying for specific international destinations.The reciprocity principle may also be considered in particular conditions.
7. What procedures are there for hearing or deciding contested applications for licences or other rights to operate particular routes?
Contested applications will be decided via administrative proceedings before the AAC. Once this instance is exhausted and a decision is appealed it will be passed before the Judiciary to consider a final decision and conclusion of the issues.
8. What requirements must a foreign air carrier satisfy in order to operate to or from your country (assuming that it has the necessary traffic rights)?
As per Book XV, art 47 of the Civil Aviation Regulations the requirements to met for an application to be conserved are:
1. proof of existence of the company and its permits at the country of domicile
2. a detailed description of the proposed operation, which in general shall cover: all information about the aircrafts and its equipments,maintanance records, registration certificates, crew meber licenses and records, all technical and instructional proceedings for maintanance and instruction of crews and personnel; proposed route, including all details technical and geographical;
3. details about process and methods for supervision of operations
4. nature of business
5. quality controls, compliance and proceedings
6. due diligence disclosure on company structure and composition of shareholder structure
7.Letter of commitment and compliance to all applicable laws and regulations in Panama
8. Disclosure of financial capacity
9. Management appointed
10. Directors responsible for the area and their technical experience
11. operational manuals for the aircrafts
12. proposed date for beginning of operations
9. Are charter services specially regulated?
Charter operations are defined as per Law 21 in article 89, and 90, .
Furhermore complemente via the rules and regulations stablished for such type of commercial operations as per the Civil Aviation Regulations (CAR)
10. Are airfares regulated, and if so, how?
Air carriers are free to set airfares. A regulatory approval is not required.
Aircraft
11. Who is entitled to be mentioned in the aircraft register? Do requirements or limitations (particularly as to nationality) apply to the ownership of an aircraft listed on your country’s register?
Administratively the AAC maintains an aircraft registry, principally for purposes of maintaining supervision and control of all aircrafts registered in Panama.
Ownership and any transaction related to an aircraft is required to be registered at Panama Public Registry, so it can be acknowledged as avild against third parties, Art 30 of Law 21.
As per Art 32 of Law 21, the Public Registry maintains an especial sections for aircrafts whereby any record as to title, liens, leases, contracts, arrests, claims or any judicial order may be recorded.
12. Is there a register of aircraft mortgages or charges, and if so how does it function?
As per above any charge to have validity against third parties must be recorded at the aircraft section of the Public Registry. As per Art 33 any charge will be valid from the moment it has been presented for registration.
Any lien or charge must be recorded as a public deed, must include all details pertinent to the charge and the aircraft and must pay the registration charges.
Documents produced in a foreign country must follow the process of authentication, to then be converted into a Panamanian public then and proceed with registration.
13. What (if any) rights are there to detain aircraft, in respect of unpaid airport or air navigation charges, or other unpaid debts?
Debts originated within the territory of Panama allow the AAC to detain an aircraft following compliance of applicable proceedings.
Commercial debts, be it foreign or local, must follow the applicable Panamanian judicial instances.
14. Do specific rules regulate the maintenance of aircraft?
The Civil Aeronautics Regulations contemplate maintance standards applicable to specific types of aircrafts, operations and types of uses.
Airports
15. Who owns the airports?
In principle and by means of Art 54 of Law 21, international airports are under the direct management and supervision of the AAC and authorities such as Customs,Inmigration and Security Institutions.
Law 233 of 2003 grants the State and the AAC the power to organise private entities to manage airports and aerodroms, yet retaining 100% of the control by the State.
Private aerodroms are considered within the scope of Art 58, yet conditioned to the compliance of the standards and requirements established in the CAR`s
16. What system is there for the licensing of airports?
Currently under revision by the AAC and proposed new legislation
17. Is there a system of economic regulation of airports, and, if so, how does it function?
Currently under review, as per above.
18. Who provides air traffic control services? And how are they regulated?
As per Law 21, air traffic control services are under the responsibility and supervision of the AAC.
Traffic control services regulations are contained in the Civil Aviation Regulations,Book XXVIII, and as per Art i.i.2 it follows the standards suggested by the ICAO.
Liability and accidents
19. Are there any special rules in respect of death of, or injury to, passengers or loss or damage to baggage or cargo in respect of domestic carriage?
Law 21 of 2003 in its Title XII, about civil liabilities, establishes all considerations and general rules related to death and injury, Art 138.
For domestic carriage the applicable article 152 deals with death and injury to passengers. Damage to baggage and cargo are deal at 153 and 154 respectively.
Article 156 establishes the liability exonerations.
Limits of Liability are established in Art 157 and extracontractual liability is defined in Art 158.
20. Are there any special rules about the liability of aircraft operators for surface damage?
Law 21 of 2003 in its Chapter IX, defines the general principle for damage to surface in its Article 183.
21. What system and procedures are in place for the investigation of air accidents?
Title X of Law 21 of 2003 establishes the framework for investigation of air accidents.
The AAC is responsible for the investigation of air accidents following the standards established in the Chicago Convention, and which are contemplated in the Civil Aviation Regulations. The AAC maintains a especial department for the prevention and investigation of accidents, it corresponds to this unit to manage all investigations in accordance to the rules and procedures established.
22. Is there a mandatory accident and incident reporting system, and if so, how does it operate?
Yes it is mandatory to investigate any accident or incident reported in the Rep of Panama.
The investigation is principally technical and it is the responsibility of the unit for prevention and investigation of accidents.
Any person that has knowledge of any incident or accident is expected to provide information to the local AAC representative.
Competition law
23. Do sector-specific competition rules apply to aviation? If not, do the general competition law rules apply?
Law 45 of 2007, which establishes the general competition law rules applies to aviation issues in Panama
24. Is there a sector-specific regulator or are competition rules applied by the general competition authority?
The Panamanian general competition authority and the AAC, depending on the issues, will maintain administrative competence and jurisdiction for aviation matters.
25. How is the relevant market for the purposes of a competition assessment in the aviation sector defined by the competition authorities?
The general applicable rule is that the relevant market is determined by the existence of one product or service, or a group of products or services and other substitute products or services within the geographical area which those products or services are provided. The Authority may have the capacity to determine the relevant market.
26. What are the main standards for assessing the competitive effect of a transaction?
Standards for assessing the competitive effect of a transaction are:
1-possibility of substitution of the product or services for others, and the capacity of consumers substitute products or services
2-the distribution cost of the product, its inputs, complements and substitutes within the territory or abroad , taking in consideration the costs and the restrictions enacted by economic agents or their associations and the necessary time to supply the relevant market.
3-the costs and possibilities of the consumers to concur to other markets
4-the restrictions imposed by law, that limit the access to an alternative source of supply or the access of the suppliers to alternative clients
5- the dynamic of innovations
27. What types of remedies have been imposed to remedy concerns identified by the competition authorities?
The authority may proceed as follows:
1-order a transaction or activity to be regulated in accordance to terms and conditions of competition law
2-order the dissolution of any economic concentration or potential economic concentration , terminating any control or termination of any act in accordance to the specific conditions.
Miscellaneous
28. Is there any aviation-specific passenger protection legislation?
Law 21 of 2003 establishes the framework for liabilities and the minimum insurance requirements in respect of liability for passengers, baggage cargo and third parties.
29. Are there mandatory insurance requirements for the operators of aircraft?
Title XII of Law 21 of 2003 establishes insurance as a mandatory requirement for aviation operators and their equipment.
30. What legal requirements are there with regard to aviation security?
Panama, through the AAC, follows the recommendations and standards of ICAO, and will also establish rules taking in consideration matters of national security .
31. What serious crimes exist with regard to aviation?
Law 21 of 2003 initially introduced a number of crimes which have now been adapted in articles 319, 320 and 330 of the Panama Criminal Code.
Major offences include:
• the commission of acts against the safety of the aircraft;
• hijacking of an aircraft; and
• commission of acts against air traffic.
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