HISTORY: AIR PANAMA INTERNATIONAL, also known as Air Panama, was a state owned airline from Panama that served as the flag carrier of the country between 1968 and 1989. From its hub at Tocumen International Airport in Panama City, scheduled passenger flights to a number of destinations in the Americas was offered. Air Panama Internacional was founded in 1968 as a joint venture between the government of Panama (67 percent) and Spanish airline Iberia (33 percent). When Iberia pulled out approximately ten years later, the airline became fully state-owned. In January 1990, Air Panama Internacional declared bankruptcy. An attempt by the government of Panama to relaunch the airline in 1993 as Panama Air International failed. In 2005, Turismo Aereo acquired the Air Panama branding and adopted that name.
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