Posted on 01/12/2016 6:41:13 AM PST by Citizen Zed
American Airlines Group Inc on Tuesday said it has written off more than half a billion dollars in revenue stuck in Venezuela because of currency controls.
American, the world's largest airline, said in a regulatory filing it will recognize a $592 million special charge in the just-ended fourth quarter "due to continued lack of repatriations and deterioration of economic conditions in Venezuela."
The South American country's socialist government had compelled carriers to sell tickets in bolivars but made reconverting the sales into U.S. dollars difficult. Globally, airlines have around $3.7 billion trapped in Venezuela as a result of its 12-year-old currency control system, the International Air Transport Association said in June.
(Excerpt) Read more at mobile.reuters.com ...
Do they lose control of the money or are they just limited to spending it in country?
They should buy oil there, ship to to the Gulf Coast and get the JetA.
Globally, airlines have around $3.7 billion trapped in Venezuela as a result of its 12-year-old currency control system,
...
Just a fancy way of saying they’re stealing money.
Venezuelan crude is a very heavy, sulfur laden oil it cannot be used to make Jet A.
ONce again, we see an example of the incopetency in our government servants.
Yes
I’m sure the airline finance departments considered that, but something in Venezuela prevents that. There are also tax considerations that make the write-off advantageous.
I remember barter being used as a way to get money out of communist countries with similar conversion controls back in the 70s. I think GE was paid in bulk nails for an advanced steam turbine. Your idea is a good one.
They should just shut down operations there.
Then they should buy up all of the toilet paper for use in their lavs....
What kind of idiot earns a half billion dollars in a communist country and leaves it there long enough for it to be trapped? They should have been buying enough oil and fuel there to use up those funds, or they should have cut back on their flights since profits that cannot be spent are not real.
If all American airlines continue serving flights to and from Venezuela, they need their heads examined.
Guess who gets to make up the losses? American airline travelers on ALL Airlines.
Boycott Venezuela, morons!
My thought also, convert it into something you can take out of the country. The obvious challenge is finding something that you could do this with, most likely there is little that would fit the bill.
That was the conundrum facing GE — that’s why they took NAILS, of all things.
I just checked and American Airlines will still fly you to Venezuela. Go figure.
Anyone that does business with a Communist country deserves to take it in the a$$.
Vanadium content???
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