Panamanian travel agencies in dire straits

Taca Group’s announcement of cutbacks in plane ticket sale commissions has put travel agencies in a jam that, as many experts believe, could pave the way to bankruptcy if other airlines follow suit.

Panama’s Travel & Tourism Association (APAVIT is the acronym in Spanish) says Taca’s decision –scheduled to go into effect next April 16- deals a deadly blow to the travel industry.

APAVIT chairwoman Aida Quilano –whose guild huddles 36 of the 70 travel agencies operating in Panama- pointed out that Taca made known it would slash fees off plane ticket sales from 6 to 1 percent, a figure bound to bring severe consequences as no company can really operate under a one percent rate.

Mrs. Quijano recalled that back in 1999, Taca was the first airline to slice off commissions from 10 to 6 percent, a move that was soon followed by other air carriers. The four-point cut forced over two dozen local travel agencies to close up shop.