Dubai: The UAE and the Republic of Panama signed an "open air services agreement" on Tuesday.

At the signing ceremony held in Panama City, the two delegations agreed that designated airlines of both parties will have the right to perform scheduled air services.

The agreement was signed by Director General of GCAA Saif Mohammad Al Suwaidi and Director General of the Civil Aviation Authority of Panama Rafael Barcenas in the presence of industry officials from both countries.

The UAE, represented by the General Civil Aviation Authority, designated Emirates, Etihad, RAK Airways, Air Arabia and flydubai as UAE national airlines under the agreement. Panama designated Compania Panamena de Aviacion (Copa Airlines), Parsa (Air Panama), Aerolineas Pacifico Atlantico (Aeroperlas) and DHL Aeroexpreso.

The agreement allows unrestricted frequencies, capacity and types of aircraft, whether owned, interchanged or leased, to be operated by the designated airlines of each country in any type of service (passenger or cargo) on the route between Panama and the UAE.

In addition, both parties agreed to allow unrestricted non-scheduled operations between the two countries and to recommend to their authorities to conclude an agreement for the avoidance of double taxation.