Posted on 06/03/2016 10:31:46 AM PDT by Gamecock
Latin America’s largest airline, Latam, has announced that it has suspended its flights to Venezuela. The news comes barely a day after Germany’s Lufthansa suspended its services to the country.
The suspension of air services underlines the worsening economic conditions in the South American country. Low oil prices and the socialist government’s expensive social welfare programs have pushed Venezuela to the brink of an economic disaster, with people queuing for hours to purchase basic goods.
In a statement, Latam airlines said flights on its Sao Paulo to Caracas route would be suspended within the next few days, while routes to Caracas from Lima and Santiago would be halted by the end of July. The German airline [Lufthansa] also flies from its Frankfurt hub to Venezuela’s capital Caracas three times a week, but the company said it would cancel this route from June 17.
Several other international carriers have halted or reduced their Venezuelan operations, including Air Canada, American Airlines and Alitalia. This is due to a drop in demand for business travel to the country, as well as the Venezuelan government withholding airline revenues.
Lufthansa says Venezuela owes the airline millions in ticket revenues. In June last year, the International Air Transport Association (IATA) urged the Venezuelan government to release $3.7 billion in withheld airline funds.
“Air connectivity in Venezuela has suffered because of the lack of progress over the blocked funds issue and the deterioration in the operating environment. I urge the government to work with the airline industry to resolve the problem once and for all,” said Tony Tyler, IATA’s Director General and CEO.
In Latin America, the aviation industry provides over 4.9 million jobs and generates $153 billion in economic activity, according to IATA.
Some airline companies have said that currency controls in Venezuela made it impossible for airlines to convert their earnings into dollars and send the money abroad.
They are afraid passengers will hijack the plane on the tarmac and fly it to the U.S.
2. Who can afford to fly out of there?
Not surprised.
They know that Venezuela is one step closer to an outright revolt. It is coming to that country for certain.
Who wants to fly a hundred million dollar aircraft in Caracas and have the government suddenly decide to seize all assets on the ramp.
You’d think they’d quietly orchestrate the pullout, wanting to leave behind as little equipment & personnel behind as possible before announcing service suspension.
I expect remaining airlines are scrambling to do the same before what’s left is seized.
I love how the MSM, without any sense of irony, speaks about the “social welfare programs” run by the government - even though the hospitals are empty, schools are closed, and there is no food.
I think Maduro could be gone within the next few months—even the military that supports Maduro knows the country is falling apart rapidly.
They need to pull a San Sebastian Line and service the routes with DC-3’s, just in case. :)
Trapped...... those that might can’t escape to their stashed wealth
Think a safe bet might be that those with wealth abroad left while Chavez was still alive. That said, there are plenty of large yachts that could do off shore pickups, helos even.
Yep
there were procrastinating Jews in Germany that went to the gas
there are certainly procrastinating Venezuelans fighting for the last flights out
Depending on how many flights a day they have, they may actually contract out a lot of those services. Hard to guess exposure for US carriers with all the mergers.
Chavez’ daughter has assets totaling $4 billion + squirreled away.
At last we shrug.
I suspect there some questions regarding landing fees, and navigational aids service fees....the locals may want the fees paid in local currency....”like now” requiring crews to carry cash.....
From the article: “In Latin America, the aviation industry provides over 4.9 million jobs and generates $153 billion in economic activity, according to IATA.”
Interesting the author(s) placed this generic statement about Latin America between discussion of Venezuela specifically.
Of course they could go the opposite way:
Ruthless strongman, hosing protesters down with machine gun fire, night time raids with special agents in black cars and military trucks to haul away whole families, show trials, gulags and being “disappeared”.
It’s not like that hasn’t happened in other places in the past.
OR:
Maduro could be the next Ceausescu, shot with his wife up against a brick wall.
To me, the jury is still out. It could go one way or the other. The question is the Venezuelans themselves. Is there enough of a middle class left to want a return to prosperity, or are there too many Gibmedats who want the socialist to double-down as long as they stick it to the Man?
Its simple. Too many gimmedats who want to be flown to America for free healthcare, food and schooling. Then, when eligible to vote, will vote to recreate the mess they fled in Venezuela.
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