Varghel From Italy, joined Sep 2001, 74 posts, RR: 0 Reply 3, posted (12 years 2 weeks 1 day 1 hour ago) and read 750 times:
Viasa was sold in 1991, mainly to Iberia. Therefore, the company began to increase its debts, above all because of Iberia's bad managemnet.
By 1991 till January 1997 Viasa lost 27 of its international routes, even the more profitable as New Orleans or Houston. Iberia management did not want Viasa to reneuve its aircrafts so they suddendly quitted all MD-11 orders and rented them, in over price, a DC-10 and some 727's.
Iberia ordered that all Viasa business had to be Spanish made: Iberia cancelled the profitable relationship with KLM (dating back to 1960) that assisted Viasa in all concerning the aircraft manteinance.
So on: in January 1997 Viasa was in debt for less than $20 millions, but owed $140 million just to Iberia.
Iberia didn't really want to save the company, and Viasa (among dozens of plans to save it from Venezuela and the United States) was forced to cease operations.