The Ministry of Land, Transport and Maritime Affairs of the Republic of Korea (Minister: Kwon, Do-Youp) announced that an agreement was reached on liberation of air transport where operation frequencies and flight models are not restricted when transporting passengers and cargoes between the two countries at the Korea-Panama Aviation Conference held in Panama City on June 20, 2012.

※ Heads of the delegations: (Korea) Mr. Park, Myoung-Sik, Director-General of Aviation Policy, (Panama) Mr. Rafael Barcenas, Director-General of the Civil Aviation Authority

* Among Latin American countries, Chile, Peru, Mexico, Brazil, Ecuador, and Paraguay already signed open skies agreements.

This Open Skies Agreement will facilitate people-to-people and goods exchanges between the two countries by laying the foundation for opening up routes in Panama by Korean aviation companies.

Establishment of aviation networks with the Latin American region that is the treasure trove of natural and tourism resources will be further boosted by this Agreement.

* Currently, Korean aviation companies operate only one Latin American route in Brazil (three times a week)

In particular, this conference reached an agreement to allow without restrictions the fifth freedom by which an aviation company is entitled to pass through a third county, in view of the fact that it is difficult to open a direct route due to the as yet immature market environment and long operation distance between the two countries.

* The fifth freedom: a Korean aviation company is given a right to transport passengers and cargoes between a third country (the US, for example) and Panama in a case where it is to pass by the third country.

As the two countries agreed to give permission to the code-sharing on an autonomous basis to their aviation companies, even before a Korean aviation company directly opens up a route to Panama, Korean passengers would be able to enjoy a comfortable journey by using an air ticket issued with a name of a Korean aviation company.

* (Code-sharing): it is a system where an aviation company that does not operate a route in reality (a marketing carrier) may sell and carry out transport with its own company name using the air tickets of another aviation company (operating carrier) in a form of indirect operations.

※ Thanks to the agreement reached between the two countries on code-sharing, a Korean aviation company (Asiana Airlines) is set to carry out a code-sharing with COPA, a Panamanian aviation company.

In particular, even in a case where Korean passengers use a Panamanian aviation company that carries out a code-sharing with a Korean aviation company, their mileages are to be accumulated towards their accounts at the Korean company, which will further promote passenger convenience.

Panama, is rising as a hub of international trade, logistics, and finance connecting the Atlantic to the Pacific, and North America to Latin America, based on such means as promotion of the Colon free trade zone, and expansion of the Panama Canal (set to be completed in 2014).

As of late, Panama is being dubbed the "Dubai of Latin America," boasting ample potential as an aviation market, which creates positive prospects for Korean aviation companies operating direct flights in the years ahead, said an insider at the MLTM.