The director of Colombia’s aviation authority, Aerocivil, confirmed the breakdown of an agreement between Colombia and Ecuador to treat flights between the coutries as “domestic,” according to financial publication Dinero Friday.
Santiago Castro director of Aerocivil, Colombia’s state-run aviation agency, said an agreement could not be reached on costs nor operations, meaning there will be no 20% drop in ticket prices for flights between the two countries, as had been anticipated.
Because the majority of Colombian airports are concessions, meaning they are owned by larger entities, the money that is recieved from international flights charges allows them to break even after paying rental fees.
The agreement was hailed by Colombia’s Ministry of Trade, Industry and Tourism in January who stated the accord would go into effect April 1.
Colombian President Juan Manuel Santos and Ecuadorean President Rafael Correa announced in December 2011 that flights between the neighboring countries would be treated as “domestic.” The deal would have waived international airport tax and fuel surcharges, greatly reducing prices for residents traveling between the two countries.