Published On: Thu, Feb 23rd, 2017

Tax debt now reason for grounding MDs InselAir Aruba

InselAirORANJESTAD, WILLEMSTAD - The Aruban Civil Aviation Authority now uses the tax debt of InselAir Aruba as a reason to keep the MD fleet of the airline on the ground.

First, the aircraft were grounded because of technical reasons, later for administrative reasons and now are using tax debt. The new InselAir management is outraged after they received this notification.

June Sluis, Deputy Chief Executive Officer, Flight Operations says that no airline can survive if the majority of the fleet is grounded and cannot generate revenue. Now, the company has to lease aircraft from other airlines which cost a lot of money.

Earlier it was announced that the tax department had seized InselAir Aruba’s assets. These assets consist mainly of furniture, company cars and computers, which will be sold through a public auction tomorrow. However, the planes are not recorded in the company’s books.

The Aruban government wants, with the grounding of the aircraft, put pressure on the company to satisfy the debt. But the company has a lack of cash flow, mainly due to huge arrears in the payment by the Venezuelan foreign exchange authority CADIVI.

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