CaboVerde From Dominican Republic, joined Nov 2001, 106 posts, RR: 0 Posted (13 years 7 months 2 weeks 1 day 6 hours ago) and read 947 times:
The Commission for Public Enterprise Reform (CREP)has chosen Aeropostal, otherwise known as Consorcio Dominicano 2001, to privatize Dominicana Airlines. Rafael Montilla Martinez, president of CREP, said that the company bid US$10.2 million for the airline, the minimum set by the CREP. The company was the only one that qualified for the tender. The privatization stipulates that the state will own 50% and private investors 50%.
Aeropostal announced it would use three DC9s with a capacity of 111 passengers each to start operations.
The president of the National Association of Airlines, Amin Canaan, said that going ahead with a tender with only one company enabled Aeropostal to get the state airline at “a real bargain.” Canaan estimated the airline’s real worth as in the range of US$40-$50 million.
“We feel it was an incorrect and unfair decision because the timing is poor and only one company was participating,” he said. Canaan also warned that the company had overvalued its airplanes and that they are obsolete.
A 1999 resolution signed by the Civil Aviation Board gave Dominicana Airlines the exclusive right among Dominican airlines to fly to the United States for seven years of which only two and a half have expired.