IATA calls on Venezuelan gov to honour promise
Venezuelan government failing to meet promises to release $3.9 billion in airline funds.
April 29, 2014
The International Air Transport Association (IATA) called on the Venezuelan government urgently to honor its commitment made in March to permit the repatriation of $3.9 billion of airline funds at fair exchange rates. The funds are from sales of airline tickets in Venezuela and are being held in contravention of international treaties.
IATA cautioned that that failure to release the airline monies puts at risk a major contributor to the well-being of the Venezuelan economy—sustainable air connectivity. “The situation is unacceptable. In March the Venezuelan Government promised airlines that it would release their money for repatriation at fair exchange rates. Since then there has been very little progress. Airlines are committed to serving the Venezuelan market but they cannot sustain operations indefinitely if they can’t get paid,” said Tony Tyler, IATA’s Director General and CEO.
IATA continues its call for the immediate release of the blocked funds for repatriation at the exchange rates in place at the time the funds were generated. In most cases this was 6.3 Bolivars to the US dollar.
Throughout the month of April, the Venezuelan government made various offers to release some of the airlines’ funds, but at inferior exchange rates or with arbitrary discounts. These actions contradicted prior commitments to enable the airlines to repatriate the full amount they are owed and were rejected by the airlines. Through IATA the carriers are calling on the government to release the full amounts at the exchange rates applicable when the funds were generated.