Published On: Mon, Mar 24th, 2014

Still hope for Tiara Air

MuyaleORANJESTAD – Tiara Air and the Department of Civil Aviation met to discuss different issues the Aruban airline is facing. Tiara Air’s CEO, Alejandro Muyale, explained that they were asked to halt their operations until some of these issues were resolved. Tiara Air made sure its passengers were transported with a charter company.

Muyale explained that the Department of Civil Aviation emphasized on certain key personnel in the organization, who were not present to guarantee the safety of the passengers. Tiara explained that one of these employees was not on the island, but that the airline can still guarantee the safety of its passengers and that Tiara is complying with all the requirements from the authorities.

The authorities are paying close attention to the airline because of its financial problems. The company is dealing with this issue, even though the situation is a bit different than normal. Muyale expressed that they can guarantee the safety of their flight because they have the equipments and also the necessary staff in each area of the company.

Muyale also indicated that they are planning now on restructuring the company and also acquire funds to inject in the airline. This will help to continue operating, at least in Venezuela and to open other destinations in the region.

Currently the airline is operating with a Boeing 737, because the other aircrafts are undergoing maintenance.

Muyale explained that they have a plan, but they need funds to execute them. They also need their smaller aircrafts to continue with their regular operations. This will be in about three weeks and he hopes that in six months the company can open a new destination for the bigger aircrafts. One destination could be Brazil.

One of the measures taken by the airline was to reduce their staff from 130 to 85. These employees are receiving their salaries in advance, meaning that when the company receives payment, it will pay its employees. The airline has not been able to process its payroll because of the funds stuck in Venezuela, according to the airline CEO.

Muyale believes that the issue with Venezuela and its foreign exchange administrator CADIVI is very delicate and the country’s current political situation is not helping to process of repatriating the much needed funds. In the mean time there are indications that CADIVI will pay its outstanding debts for the month January, February of 2014, but it is still not clear what will happen with 2013. Tiara Air is in contact with its lawyers in Venezuela because nothing is official yet. There is nothing concrete yet and up to this day there is no exact date for when the payments will be made.

Tiara Air received its AOC again, but has till this Friday to put its operations in order.

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