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“Investors Wanted”: Modification to the DR Aviation Law

On April 2013, the Dominican Congress approved a Modification of the Dominican Republic Aviation Law (491-06), and on April 24th the President made the Law official by Presidential Decree.

Briefly explained, Law No. 67-13, modified Law 491-06, in the following aspects:

– Regarding Budgets and Financial aspects of the IDAC (civil aviation authority)

– Article 78 was modified and expanded to reflect the language of Art.83-BIS of the Chicago Convention.

– A less irrelevant modification on the composition of the country’s representation in ICAO and CLAC.

– But without doubt, the most important and transcendental modification was a change on  the principle of substantial ownership of an air carrier.  By virtue of this modification, a company incorporated with 100% of foreign ownership could be considered a “dominican” airline, understood that such ownership belongs to an international known airline and that get`s the authorization of the Executive Branch (President).

With this law, the DR have changed course on the international principle of substantial ownership thus adopting a more flexible approach, according to the trends of the industry.

This should certainly will draw interest from international airlines looking to invest in the DR and benefit from the international aviation treaties signed by the country.

If you need more information about this topic, please let me know and I will gladly attend to it.