Airlines scale back Venezuela operations

Airlines scale back Venezuela operations
By admin


International airlines have scaled back their operations in Venezuela amid a dispute over dollar payments with the government, according to reports.

Ultimas Noticias said 11 of the 26 airlines operating in the country have either reduced the frequency of their flights or are using smaller aircraft to service Venezuelan routes.

Monday's report linked the shrinkage to the government's failure to reimburse airlines some $US3.7 billion ($A4.14 billion), according to the International Air Transport Association.

In Venezuela, airlines are required to sell tickets in bolivars under an arrangement in which the government later converts the local currency to US dollars.

But IATA says the government has made no dollar payments to the airlines since October.

Tony Tyler, who heads IATA, last Wednesday said: "Airlines certainly cannot sustain operations indefinitely if they can't get paid".

Venezuela's President Nicolas Maduro responded on Saturday, warning airlines of "severe measures" if they reduced their operations.

"The company that leaves the country will not return while we hold power," Maduro said.

Ultimas Noticias said Aruba-based Tiara Air had reduced the number of seats on offer by 78 per cent, while Colombia's Avianca has cut its by 66 per cent.

Air France, Lufthansa, Iberia, Air Europe, American Airlines, Air Canada, Copa and Lan Peru have reduced the frequency of their flights or the size of their aircraft flying Venezuelan routes, with the drop in available seats ranging from 15 to 35 per cent, the report said.

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