|Quoting CCSLSP (Thread starter):|
do you think that the Venezuelan market is big enough for all of them???
You are right !!
That is to say, the market is nowhere near big enough for all of them and I can see a distinctive policy by the Government to massacre (eventually) all vestige of competition at home and, most logically too, the foreign routes.
That Conviasa has not grown faster (capitalising the enormous injection of capital and easy-terms loans it has at its disposal) is only because, till about 3 weeks ago, it was headed by someone almost legendary famous for his incompetence: Captain (Venezuelan Air Force.. not commercial aviation !) Wilmar Castro Sotelo.
He was dumped overnight (his dismissal announced to him in typical Chavez fashion by means of the Gaceta Oficial - Official Government Journal) and the airline placed in the hands of the Infrastructure Ministry instead of the Tourism Ministry.
To those not aware of official Venezuelan government policy, it would be correct to state that, since his coming to power, the size of the private sector in Venezuela has shrunk to barely 52% of what it was in 1998.
Over 60% of Venezuela's food needs is imported through a government outfit called Mercal which is run by military buddies, brings merchandise tax and duty free and sells it all at subsidised prices up to 40% lower in several cases than comparable normal private supermarkets.
Venezuela's agricultural output and productivity are at levels comparable to the 1940s as the country is saturated with foreign produce, from chickens and salami to beans and even rice. In 1987, Venezuela even produced surpluses in rice, sugar, beans, coffee and cotton. Today, all, absolutely all, have to be imported.
It does not surprise me one bit that Conviasa's objective on the domestic market is to kill all competition as it is waived landing charges, fuel is purchased at preferential rates or with easy payment terms and, as a State outfit, it can run whatever deficit it desires since its needs will always be topped up by the Treasury.
That is just my vision witnessing current trends and the mirror image of the rest of the economy which is more and more in the hands of the State. Even the banking sector, to those who think banks are "independent" or private.. 65% of all their revenue comes from Venezuelan Treasury Bills. Any time soon, the Government can pull the plug and just about all will collapse !
Greetings from Cancun