Published On: Thu, Jan 30th, 2014

Heerenveen: ‘Problems with CADIVI positive for Curacao economy’

Edward HeerenveenWILLEMSTAD - According to the director of the local airline Insel Air, Edward Heerenveen, the problems with the Venezuelan foreign exchange administrator CADIVI and the devaluation of the Bolivar, are working in favor of the Curaçao economy. "Because we have reduced the ticket sales to Miami, Paramaribo and Santo Domingo from Venezuela, we see that travelers are deciding to stay in Curacao," the Insel Air director said.

The airline has noted during one of their arrivals at the Curacao Airport that 25 percent of travelers used Curaçao as a stopover and 75 percent remained in Curacao. “This means that they spent their money here, which is beneficial for the economy of the island.” Heerenveen believes that Insel Air is here at risk while Curacao is earning money. “At some point we have to analyze this situation and look at whether the risk can be shared with the government.”

Different airlines, which are having problems with CADIVI and the devaluation of the Bolivar, are in the process of reducing or halting their operations to and from the various Venezuelan destinations. Insel Air still has 50 to 70 million stuck at the foreign exchange administrator. “The devaluation does not apply to the funds since they were submitted to CADIVI before. December and January were not yet filed, and that gave us a small setback. The decision to reduce the ticket sales to Miami, Paramaribo and Santo Domingo, will hopefully help us reduce this setback,” Heerenveen said.

The International Air Transport Association (IATA) is currently negotiating with the Venezuelan government to get the funds for Insel Air. “The Venezuelan government is presenting all kinds of proposals on how they will pay the hefty amount,” Heerenveen indicated. “One of those proposals is a barter deal. Venezuela has a lot of oil. We hope to be able to resolve this soon, because this should not last longer.” The total debt of Venezuela to all airlines nearly 2 billion dollars.

By Aruna Jhagru

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