Adverse Operating Environment for Airlines Erodes Air Connectivity
“The Venezuelan government’s policies are crippling the air transport sector and depriving its people of the economic benefits that it could bring. Air travel options in Venezuela are diminishing while the country’s citizens and businesses pay more to travel due to the negative impact of government policies. The 8.5% fall in passenger numbers is significant. By contrast, other key Latin American economies saw passenger growth in the 2 to 12% range. An urgent change of policies is needed,” said Tony Tyler, IATA’s Director General and CEO.
Passenger Traffic Ranking by Country, Latin America and Caribbean 2014
Venezuela is breaching international agreements and the principles of the Chicago Convention in its treatment of airlines. Some examples include:
- Currency controls prevent airlines from repatriating their revenue; total blocked funds now stand at US$3.8 billion
- Foreign carriers are forced to pay for fuel in US dollars instead of Venezuelan bolivars, going against the non-discriminatory spirit of the Chicago Convention which Venezuela has signed. This is particularly problematic as purchasing fuel is one of the few avenues they have for spending accumulated local currency that cannot be repatriated.
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Notes for Editors:
- IATA (International Air Transport Association) represents some 260 airlines comprising 83% of global air traffic..