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Lufthansa Bailing Out Of Venezuela

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  • Lufthansa Bailing Out Of Venezuela

    I wonder if other airlines will follow suit?

    News link:

    German airline Lufthansa says it is suspending its flights to Caracas, citing the difficult economic situation in Venezuela.

  • #2
    LAN / Latam follows suit, with the flights between Caracas and Sao Paulo, Lima and Santiago.

    --- Judge what is said by the merits of what is said, not by the credentials of who said it. ---
    --- Defend what you say with arguments, not by imposing your credentials ---

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    • #3
      Originally posted by Rick G View Post
      I wonder if other airlines will follow suit?

      News link:

      http://www.foxnews.com/world/2016/05...venezuela.html
      I'm not surprised - earlier this year American Airlines wrote off close to $600 million owed to them by Venezuela.

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      • #4
        The only carrier that seems to be making some headway is Caribbean Airlines, which has found a bit of a niche.

        With the inability of foreign carriers to repatriate their monies from Venezuela - their departure effected local carriers to either pick up the slack (and increase price dramatically as they were now operating without competiton) on the best routes, and let the less healthy ones die as they economy slowed. Caribbean Airlines was able to pick up traffic on the CCS-POS route, and then transfer them to the POS-MIA, POS-FLL and POS-JFK routes (in much the same way that BW uses POS as a transit hub to GEO).

        The monetary repatriation issue was 'settled' via diplomatic channels (BW is State-Owned) with the monies being repatriated directly to the Government of Trinidad and Tobago.

        That was months ago. The situation now is far more dire.

        At present, the aviation industry's needs have taken a back-stage to the humanitarian one. For example, recently, Trinidad and Tobago signed an aide-package with Venezuela thus releasing $50 million worth of locally produced foodstuffs to be transported and distributed to Eastern Venezuela. The debt repatriation looks even more fragile these days, and at present, Caribbean Airlines is hedging on Venezuela paying it back. Smart move? AA left, with more than half-a-BILLION left-behind/lost...
        Whatever is necessary, is never unwise.

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