Published On: Wed, Mar 12th, 2014

IATA: ‘Airlines will no longer operate to Venezuela’

Tiara airWILLEMSTAD - Venezuela airlines may start to avoid Venezuela if the country does not pay its outstanding debts in the future. This is a warning by the aviation organization International Air Transport Association (IATA) to the government of the South American country.

Venezuela has 3.7 billion in debt to airlines.

Unacceptable

CEO Tony Tyler says he has sent an urgent letter to President Nicolás Maduro. Mediation efforts were launched a few months ago, but were to no avail. Tyler: “It is unacceptable that Venezuela does not comply with the conditions. I know that some airlines are considering stopping operations in Venezuela. We hope that is not the case, but each company makes its own commercial considerations.”

Payment problems

Dozens of airlines were already in trouble, partly due to default on the Venezuelan side. Some of these companies include Insel Air and Tiara Air. The latter has halted its flights from Aruba to Curacao, as the company is dependent for 80% on the revenues from Venezuela. That was announced by Tiara Air’s CEO Alejandro Muyale. The companies complain that they cannot meet their financial obligations because there are millions of dollars stuck in Venezuela.

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