Venezuela sees more airlines suspend ticket sales, demand payment

[unhappycamper]

http://www.latimes.com/world/worldnow/la-fg-wn-venezuela-airlines-ticket-sales-20140124,0,2603008.story



A woman speaks on her phone as she seeks information about flight sales outside a closed United Airlines office in Caracas, Venezuela. Some airlines have suspended ticket sales transacted in bolivars, the local currency, until the government pays money it owes the carriers.

Venezuela sees more airlines suspend ticket sales, demand payment
By Mery Mogollon and Chris Kraul
January 24, 2014, 1:55 p.m.

CARACAS, Venezuela — Three more international airlines on Friday joined the list of companies that have suspended ticket sales in Venezuela, complaining that the government owes them billions of dollars.

U.S.-based American Airlines and United Airlines and Panama’s Copa Airlines said they were halting ticket sales in Venezuela in lieu of the government’s failure to pay arrears that as of last month totaled $2.6 billion. Under Venezuela’s complicated foreign exchange rules, the government acts as intermediary in foreign sales of goods and services transacted in the country.

Airlines that previously announced a suspension in business operations included Air Canada, Tame of Ecuador and TAP Portugal. The $2.6 billion figure for the accumulated arrears came in a statement issued Dec. 12 by the International Air Transport Assn., an airline trade group.

“We can’t let this financial hole deepen on this route because of the lack of payment transfers,” Tame General Manager Fernando Guerrero said during a press conference in Quito, Ecuador, on Wednesday. He said Tame had not been paid for Venezuelan ticket sales since March.

[legcramp]

1. One of the problems with a centrally planned government controlled

economy is that they eventually run out of other peoples money.

BTW, has it ever been determined how much loot Hugo and his family managed to spirit out of the country and where it might be? I've seen speculation that it could be in the billions. Those poor folks sure could use some of it now.

[FrodosPet]

2. If Tame Airlines was beholden to the people, instead of it's fatcat owners

It would not worry about the money. It would keep flying because it is in support of the people of Venezuela, and therefore, the people of Central and South America.