IATA calls on Venezuelan government to end withholding of airline ticket revenues

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By admin July 29, 2014 13:30

IATA calls on Venezuelan government to end withholding of airline ticket revenues

The International Air Transport Association (IATA) called on the Venezuelan government to honour the commitment it made in March to permit 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 $424 million shared among a number of airlines, continuing sales in the country have seen the total amount owed grow to $4.1bn.

Many carriers have ceased or restricted services to Venezuela in response to the withheld funds. As a result, international capacity to and from Venezuela is down 49% from peak service levels offered last year and 36% lower year-on-year.

The withheld funds are from ticket sales in Venezuela and are being held by the government in breach of international treaties. Considering that the global air transport industry is expected to post a collective $18 billion profit this year, the outstanding $4.1bn is significant.

IATA DG and CEO Tony Tyler said: “Airlines cannot offer service when there is no certainty of payment. The Venezuelan government has made many promises to abide by its obligations. But $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.”

admin
By admin July 29, 2014 13:30