Luisca From , joined Dec 1969, posts, RR: Posted (9 years 4 days 19 hours ago) and read 6498 times:
A US court has ruled that by march 29th 2 Boeing 767-300s that were leased from Pegasus aviation should be returned because the airline has not payed 26 million dollars in fees. The airline has cancelled the Madrid and Miami flights because of this.
The transport minister of Bolivia has warned that the airline may collapse becomes these routes represent more than 50% of LAB's revenue.
Luisde8cd From Pitcairn Islands, joined Aug 2004, 2576 posts, RR: 30
Reply 4, posted (9 years 4 days 19 hours ago) and read 6414 times:
At least one of the 763s will go to Santa Barbara AL in Venezuela. Pegasus was the lessor of Santa Barbara ex-DC10s. When the DC10s were banned by the authorities because of constant tech diversions, they were returned to Pegasus and Pegasus told Santa Barbara that they would replace them with LAB's 767s.
Santa Barbara currently wet-leases a pair of 763s from Icelandair for their MAD and TFN routes but one of them (TF-FIA) will undergo heavy maintenance between early-april and mid-may. THis makes sense that the 763s (at least one of them) will fly VVI-CCS to get a Santa Barbara livery.
Luisca From , joined Dec 1969, posts, RR:
Reply 6, posted (9 years 4 days 18 hours ago) and read 6322 times:
Quoting Juventus (Reply 2): WOW, these news surely suck for LAB. What now, fly to the US with 727s and a tech-stop somewhere? Without the MIA route, they are going to be hurting. I hope things workout for LAB.
Why is it that only AA flies to Bolivia? Without LAB, could DL support a flight from ATL or CO from IAH?
They used to fly to MIA via PTY, they even had 5th freedom rights, maybe they will do this again. The MIA route is the cash cow for LAB, without it, there can be no LAB.
BTW If they do start MIA-PTY again I will be happy, ever since LB, US and IB left the route CM and AA are murdering us with the fares!
Quoting RICARIZA (Reply 5): That is really bad. I hope LAB finds a way to get around this issue. It will suck for Latin American aviation to lose LAB
They can not get around it, the minute that those planes touch foreign soil on Wednesday they will be seized
IF LB collapses I think JJ, RG, LA and CM will al fight for a piece of the pie on the routes to the US, with the maniac that is running Bolivia now loads on flights to the US are at record levels from Bolivia (especially from Santa Cruz)
DesertAir From Mexico, joined Jan 2006, 1498 posts, RR: 0
Reply 8, posted (9 years 4 days 15 hours ago) and read 6098 times:
I lived in Bolivia for 6 months in 1990. LAB was a great airline. I recall flying from MIA to La Paz on a 727 with stops in Caracas and Manous, Brazil. They need larger craft for their longer international markets. I am sorry to hear they are in crisis.
Luisca From , joined Dec 1969, posts, RR:
Reply 14, posted (9 years 4 days 9 hours ago) and read 5714 times:
Quoting RICARIZA (Reply 11): Quoting Luisca (Reply 6):
They can not get around it
Well, apealing the decision or paying the fees will solve the crisis..
Quoting Luisca (Reply 6):
the minute that those planes touch foreign soil on Wednesday they will be seized
Any foreign soil or just the US' soil? If so, why?
They would have to pay back 26 million dollars plus legal fees and penalties, and then Pegasus still has the right to refuse continuing the lease. Basically LAB voided the contract by not paying their leasing fees.
Also, planes are seized in third countries all the time, i think it can even be seized in Bolivia, a plane that cant fly anywhere except Bolivia is useless for LAB and they will just be accumulating more and more debt if they don't return the plane.
An appeal would take a lot of time and even that cant stop the seizing of the plane. LAB didn't pay, what is there to appeal? A contract is a contract, the US court will not let LAB keep the plane out of sympathy.
It basically states that there is maneuvering between the workers, the administration & the state to try and save the company. There is a labor dispute as well between current management & the workers, plus it states that the airline has a debt of roughly 160 million dollars. The government is trying to mediate, but there is bad blood between the parties involved.
MAH4546 From Sweden, joined Jan 2001, 33521 posts, RR: 71
Reply 20, posted (9 years 3 days 17 hours ago) and read 5343 times:
From what some Bolivian press is reporting, Madrid and Washington will be suspended, while Miami will continue, albeit most likely with a 727 via Panama City at reduced frequency. Good thing TAM is coming back to MIA-MAO.