Published On: Mon, May 12th, 2014

Aruba’s Tiara Air in talks with Venezuelan investors

Tiara air

ORANJESTAD – Tiara Air is in talks with an unnamed Venezuelan investor. This is according to airline director and owner, Alejandro Muyale. Speaking at a news conference on the Caribbean island recently, Muyale also confirmed reports that he has submitted a request to the Aruban Labor court to lay off 58 employees or two-thirds of its entire workforce.

Muyale said the redundancy drive, though tough, was necessary as the court required him to demonstrate that adequate cost-cutting measures were being put in place. In return for a suspension of payments to creditors, the judge and the receiver of Tiara Air, evaluate the airline on a monthly basis to see whether or not progress has been made and whether bankruptcy should be declared.

The CEO did note, however, that should talks with the Venezuelans succeed, a proposed release of USD21.8million in funds would avert the need for workforce cuts. The Aruban carrier has suffered immense financial distress as a result of the ongoing Venezuelan foreign-currency exchange crisis. Muyale noted that while some carriers had begun to receive some funds from the Venezuelan government, Tiara had not.

Meanwhile, Tiara Air has entered into a joint-venture agreement with Venezuela's Albatros Airlines in which the Arubans will operate their 4x daily Aruba to Las Piedras, Venezuela flights using an Albatros Cessna (single turboprop) Grand Caravan 208B.


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