IATA and Venezuela

The International Air Transport Association (IATA) has called on the Venezuelan Government to honour the commitment it made in March to allow airlines to repatriate in full and at fair exchange rates airline funds being blocked in the country.  While the Government has permitted the repatriation of US$424m shared among a number of airlines, continuing sales in the country have seen the total amount owed grow to a staggering US$4.1bn.

Airlines can no longer afford the risk of not being paid when providing services to Venezuela.  International capacity to and from Venezuela is down 49% from peak service levels offered last year and 36% lower year on year.

The blocked monies are from ticket sales in Venezuela and are being held by the Government in breach of international treaties.

"Airlines cannot offer service when there is no certainty of payment.  The Venezuelan Government has made many promises to abide by its obligations.  But US$4.1bn remains unpaid.  Confidence in the market is falling sharply.  Most carriers are limiting their risk with reduced capacity.  Several have completely pulled out.  Venezuela risks becoming disconnected from the global economy," said Tony Tyler, Director General and CEO of IATA.   www.iata.org

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