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uberflieger
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Tue Jun 17, 2014 11:46 pm

Quoting Venezuela747 (Reply 56):
exchange rate of 6 BsF to 1 USD

the market   rate is 70 Bolivars to 1 US$, that's 8.25 Billion US$ if American could just go to a 'cueva' and exchange it  
 
luisde8cd
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Tue Jun 17, 2014 11:48 pm

Quoting 2travel2know2 (Reply 34):
Then CM should look into flying PTY-SMR-PTY too so to have passengers from MAR travel by land to/from SMR in order to fly CM.

No, SMR doesn't work. It's like saying people would fly into SJO and then travel by road to PTY. It's too far, it's almost an 8hr drive to the border, plus another 2-3 into MAR.

CUC terminal is approximately 2500 meters from the Venezuelan border. Clearly CUC is the most convenient airport.

Quoting Mah4546 (Reply 39):
How easy/difficult/cheap/expensive is it to cross the border into Venezuela by land or boat?

Sea is difficult. There are no scheduled passenger ferries between Venezuela and the ABC islands.

Land, is relatively easy and cheap, especially in Cucuta / San Antonio del Táchira. However, the road trip from CCS to Cúcuta is very long and tedious. Also, potentially unsafe as buses are easy target to road criminals that throw stones/heavy objects to make buses stop and then rob all pax. If I ever need to go to CCS with this shortage of air services, I'd fly into CUC, take a taxi for the quick drive across the border, and take a domestic SVZ-CCS flight.

Quoting SCL767 (Reply 53):
And here is the Socialist Government response:
http://www.correodelorinoco.gob.ve/t...es-aerolinea-chilena-lan-airlines/

I find it so hard to believe that LAN is asking for 5th freedom rights for European flights to/from CCS!

Saludos,
Luis
 
Avianca
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Wed Jun 18, 2014 12:05 am

Quoting luisde8cd (Reply 58):
I find it so hard to believe that LAN is asking for 5th freedom rights for European flights to/from CCS!

fact is that the goverment "esta halando bolas" that the airline start these kind of flights... sure if they dont even pay the debts from the past you can imagine that the airlines are very interested...
Colombia es el Mundo Y el Mundo es Colombia
 
2travel2know2
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Wed Jun 18, 2014 12:23 am

Quoting luisde8cd (Reply 58):
No, SMR doesn't work. It's like saying people would fly into SJO and then travel by road to PTY. It's too far, it's almost an 8hr drive to the border, plus another 2-3 into MAR.

How about CM to MCJ Maicao or RCH Riohacha then?
I'm not on CM's payroll.
 
777STL
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Wed Jun 18, 2014 12:28 am

Quoting yv773p (Reply 48):
I don't think this is debt but rather cash. They have the cash in bolivares but they can't get out in dollars.

It's a debt owed to AA which is carried on the books as a receivable. Normally, when those receivables are older than 90 days or AA doesn't think they have much of a chance of ever collecting them, they're written off as a bad debt expense.

However, this seems like a special circumstance, even for an airline, so AA may very well still be carrying it on their books. I don't care enough to examine their public filings to find out.
PHX based
 
victrola
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Wed Jun 18, 2014 12:30 am

With the exception of VFR there can't be much demand for travel to Venezuela these days anyway. I was a frequent business traveler to Venezuela back in the '90's and early 2000's. Like many other people I know who do business in Latin America, I no longer have any reason to go.

As far as the threats from the Maduro government to not allow airlines that abandon Venezuela to come back, there will be no reason to fly there anyway until the Bolivarian Revolution dies.

As to the Venezuelans who are inconvenienced by the lack of flights I can only say that countries get the governments they deserve.
 
MAH4546
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Wed Jun 18, 2014 12:36 am

Quoting victrola (Reply 62):
With the exception of VFR there can't be much demand for travel to Venezuela these days anyway. I was a frequent business traveler to Venezuela back in the '90's and early 2000's. Like many other people I know who do business in Latin America, I no longer have any reason to go.

The demand might be largely VFR, true, but Miami-Caracas is the single busiest city pair between the United States and any city in Latin America.
a.
 
uberflieger
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Wed Jun 18, 2014 12:52 am

Quoting Mah4546 (Reply 63):
Miami-Caracas is the single busiest city pair between the United States and any city in Latin America

And when questioned about the debt in the last earnings call, Parker said Venezuela was 5% of American's total revenue. Of course that's meaningless when you never get your money.
 
aajfksjubklyn
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Wed Jun 18, 2014 1:55 am

Argentina is next unless they miraculously remove Christina. Buenos Aires is undergoing a major change that mimics Venezuela. In fact Christina felt the funeral for Chaves was more important then the 60 folks Argentina killed in a train accident. For that no mourning, for Chaves two days. Wait and see. It's very sad. I feel for Venezuela and Portenos alike. Their countries are on similar paths.
 
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usdcaguy
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Wed Jun 18, 2014 2:01 am

Quoting luisde8cd (Reply 58):

I find it so hard to believe that LAN is asking for 5th freedom rights for European flights to/from CCS!

How is that LAN would they have the right to fly those routes? They are not a Venezuelan carrier; would Chile have to right to accept local traffic in Venezuela?
 
luisde8cd
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Wed Jun 18, 2014 2:12 am

Quoting 2travel2know2 (Reply 60):
How about CM to MCJ Maicao or RCH Riohacha then?

Maicao doesn't have commercial flights and after looking at Google Maps, it looks as if neighbors easily cross the runway to get from one side of town to the other. The runway doesn't have painted lines.

Riohacha on the other hand could work, however, it's a still a long drive to/from MAR. With Cúcuta, you can get off the plane, take a cab and be in San Antonio Airport, across the border, in less than 20min.

Saludos,
Luis
 
2travel2know2
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Wed Jun 18, 2014 4:12 am

Quoting luisde8cd (Reply 60):
Riohacha on the other hand could work, however, it's a still a long drive to/from MAR. With Cúcuta, you can get off the plane, take a cab and be in San Antonio Airport, across the border, in less than 20min.

Could CUC really work that well for the Maracucho market?
There's a road from Puerto Ordaz to Boa Vista BVB Brazil, but doubt that would be an attractive way to fly in/out of Venezuela.
I'm not on CM's payroll.
 
luisde8cd
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Wed Jun 18, 2014 4:23 am

Quoting 2travel2know2 (Reply 61):
Could CUC really work that well for the Maracucho market?

For the Maracucho market, no. For the CCS market, yes. For MAR bound traffic, I believe Rio Hacha is more convenient.

Quoting 2travel2know2 (Reply 61):
There's a road from Puerto Ordaz to Boa Vista BVB Brazil, but doubt that would be an attractive way to fly in/out of Venezuela.

Correct. There's a road, but it would take you more than a day I believe to make that trip. Also, once you get to BVB, you only have domestic flights to other Brazilian cities. Too much of a hassle. I think I'd rather hire a fishing boat to take me to CUR or AUA.

Saludos,
Luis
 
yv773p
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Wed Jun 18, 2014 12:41 pm

Quoting 777stl (Reply 54):
It's a debt owed to AA

Unless I'm reading it wrong, their financials say it's cash.
Even the lazy jellyfish do it!
 
mia
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Wed Jun 18, 2014 1:27 pm

I am very surprised they let it get so bad. I was wondering out loud when the bubble was going to pop. I would have cut ops after one (1) year of back payments, not three.
"Like all great travelers, I have seen more than I remember, and remember more than I have seen."
 
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United_fan
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Wed Jun 18, 2014 1:59 pm

Quoting Roseflyer (Reply 23):
This is a huge drop. I expect some bitter words from Venezuela authorities

Well,release the funds and we'll restore capacity  
"Suspicion is a matter of opinion"
 
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lightsaber
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Wed Jun 18, 2014 2:12 pm

It is starting to look like Venezuela is already a failed state.
Some estimates put the murder rate at 79 per 100,000! (once state sanctioned murders are included).
http://www.businessweek.com/articles...as-high-crime-rate-hobbles-economy

What amuses me is:
The country is also the worst in the world for attracting talent and second worst after Myanmar for retaining it, according to the survey.

No need for flights if there aren't any consultants...

Quoting mia (Reply 64):
I am very surprised they let it get so bad. I was wondering out loud when the bubble was going to pop. I would have cut ops after one (1) year of back payments, not three.

They should have stopped accepting Bolivars earlier. That we can agree.
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Venezuela747
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Wed Jun 18, 2014 4:56 pm

Don't the airlines have to sell tickets in Venezuela in Bolivares?
ROLL TIDE!!!
 
777STL
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Wed Jun 18, 2014 7:42 pm

Quoting yv773p (Reply 63):
Unless I'm reading it wrong, their financials say it's cash.

It's still a debt.

And if you still don't believe me, here's a direct quote from that article:

"“Since we are owed a substantial outstanding amount and have been unable to reach resolution on the debt, we will significantly reduce our flights to the country,” says the airline."
PHX based
 
dcajet
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Thu Jun 19, 2014 7:47 am

Quoting aajfksjubklyn (Reply 58):
Argentina is next unless they miraculously remove Christina. Buenos Aires is undergoing a major change that mimics Venezuela. In fact Christina felt the funeral for Chaves was more important then the 60 folks Argentina killed in a train accident. For that no mourning, for Chaves two days. Wait and see. It's very sad. I feel for Venezuela and Portenos alike. Their countries are on similar paths.

OMG - where to begin? How can you reduce history to almost a cartoonish view of it? First off, it is Cristina without and H and Chavez with a Z. Second, Argentina did not kill 60 people in a train accident. Last I checked, countries do not kill people, but people do. Third, a porteño is a a native of the city of Buenos Aires. I know many an Argentine that would be quite upset to be called a porteño. And Argentina does not change governments by miracles. They prefer elections. And hold them every two years for certain positions and every four for president. So Cristina will leave in 16 months. She is not lawfully able to run for a third term.

And to say that Argentina is Venezuela... Please. The Kirchners used the Venezuelan Revolution as an ATM of sorts, at a time when credit was scarce for Argentina. Chavez made sure to spread money like butter on toast all over Argentina. And the Kirchners, who really do not ask many questions if you come with $, became friends overnight with Venezuela. Argenitna also supplied Venezuela with food supplies at a time when the Chavez revolution ensured the destruction of its own production and supply chain.

Fast forward to the present and see where the friend Cristina is. A few nonsense platitudes but she has not set foot in CCS since Chavez was elevated to the heavens and returned in the shape of a bird to talk to Maduro. No money, no love. It is not easy being her, darling Cristina.

And lets ask her why AR no longer sells tickets online in Venezuela and is downgauging all EZE-CCS-EZE to 738 effective August? Even though all 343 are leaving CCS full and in fact, oversold. Rumour has it that many of those CCS originating paxs, are not returning, for in spite of Cristina, life in Argentina is immensely better than in today's Venezuela.
Keep calm and wash your hands.
 
2travel2know2
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Thu Jun 19, 2014 3:23 pm

A lot of people are comparing Venezuela currency situation to Zimbabwe, so if someone could illustrate what Zimbabwe does different not to scare away airlines like Venezuela is doing?
I'm not on CM's payroll.
 
Prost
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Thu Jun 19, 2014 4:10 pm

Is there free press in Venezuela? Is this issue being reported at all there? From an outsiders view I can'tunderstand why the type of government they have keeps getting elected, however, I also don't know what kind of information is disseminated internally.
 
nostromopilot
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Thu Jun 19, 2014 4:33 pm

Brazil is turning into Argentina.
Argentina is turning into Venezuela.
Venezuela is turning into Zimbabwe.

#fail all around.

Compared to the successes of Mexico, Chile, Colombia, and Panama...they're the poo, so take a big whiff.

As for AA, things must legitimately be atrocious in Venezuela if they're cutting routes where, although they don't get remotely the full bang for their buck, they can essentially print money on these routes.
 
Venezuela747
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Thu Jun 19, 2014 5:53 pm

Quoting nostromopilot (Reply 72):

Is there free press? Sure, you just can't say anything bad about the government or anything that the government could consider you instigating instability in the country or they'll shut you down.

Also, when the government itself is in charge of "counting" the votes... or more clearly rigging the elections.... it's difficult to expect for a change of government.

Actually, re read the above but substitute the word "government" by "ruling part" and it'll paint a clearer picture. I have a hard time defining the ones in charge as an actual government
ROLL TIDE!!!
 
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lightsaber
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Thu Jun 19, 2014 7:08 pm

Quoting Venezuela747 (Reply 67):
Don't the airlines have to sell tickets in Venezuela in Bolivares?

Yes... They're just refusing to until the last minute and are trying to sell out beforehand. That is part of why AA is reducing service.

Quoting dcajet (Reply 69):
And to say that Argentina is Venezuela... Please.

The rest of the world sees Argentina heading down the same path as Venezuela. Read the book "Lexus and the Olive Tree" and then some books by Bernstein, then we'll discuss the economics. But any nation that is having to actively suppress imports is showing issues...

Google "dollar vs argentine peso graph"

Quoting nostromopilot (Reply 72):
Brazil is turning into Argentina.
Argentina is turning into Venezuela.
Venezuela is turning into Zimbabwe.

I've always heard it:
Brazil is the next Argentina
Argentina is the next Venezuela
Venezuela is the next Zimbabwe


All three need major economic and legal reform.

Quoting 2travel2know2 (Reply 70):
A lot of people are comparing Venezuela currency situation to Zimbabwe, so if someone could illustrate what Zimbabwe does different not to scare away airlines like Venezuela is doing?

Zimbabwe already collapsed. They're on the recovery due to 'dollarization' in 2009. Airlines sell tickets in the currency of their choice, not the local worthless script. They're in trouble though (deflation risk):
http://www.sabc.co.za/news/a/1766ca0...gative-growth-for-Zimbabwe-by-2016

This whole thread is about AA having to sell tickets in Bolivars but not being able to covert that currency into dollars. AA has $750 million worth of Bolivars at the 'official rates'... which would be worth less than $100 million if they were allowed to trade them in on the open market.

Lightsaber
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777Jet
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Thu Jun 19, 2014 9:30 pm

Quoting lightsaber (Reply 74):
Quoting Venezuela747 (Reply 67):
Don't the airlines have to sell tickets in Venezuela in Bolivares?

Yes... They're just refusing to until the last minute and are trying to sell out beforehand. That is part of why AA is reducing service.

Can't say I blame AA one bit!

It's a shame it has come to this though, especially for the pax...
DC10-10/30,MD82/88/90, 717,727,732/3/4/5/7/8/9ER,742/4,752/3,763/ER,772/E/L/3/W,788/9, 306,320,321,332/3,346,359,388
 
luckyone
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Thu Jun 19, 2014 9:59 pm

Quoting bobloblaw (Reply 29):
Venezuela is an idiocracy. Followed closely by Argentina

Nope. Just two excellent examples of why populism does not work.
 
TPA0822
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Thu Jun 19, 2014 10:12 pm

Quoting luckyone (Reply 76):
It's a shame it has come to this though, especially for the pax...

And local AA employees, as well. I don't know how labor laws work there, but it will certainly mean fewer Venezuelan employees will be needed.
 
sq256
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Thu Jun 19, 2014 11:38 pm

The axing of SJU-CCS ends the last remaining route that formed a part of the old SJU AA hub.

I'm surprised it lasted that long as a point to point route long after AA dehubbed SJU.
 
MAH4546
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Thu Jun 19, 2014 11:42 pm

Quoting sq256 (Reply 78):
The axing of SJU-CCS ends the last remaining route that formed a part of the old SJU AA hub.

I'm surprised it lasted that long as a point to point route long after AA dehubbed SJU.

The route is technically not discontinued, and will resume if/when AA is allowed to and the problem is solved. The fares on SJU-CCS are insanely high. It is no shock the route continues.
a.
 
Sinlock
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Fri Jun 20, 2014 5:15 pm

With all the drawbacks from Air Canada, Avianca, American, Lufthansa, Air Europa and a few others.
Has anyone been able to figure out much seating capacity has been lost in the past 6 months?
I'd be interested to see what the numbers would like but have no idea on how to compute those numbers accurately.
 
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par13del
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Fri Jun 20, 2014 6:04 pm

Quoting Sinlock (Reply 80):
Has anyone been able to figure out much seating capacity has been lost in the past 6 months?

Flip side would be where is the reduced capacity going, I know NAS will need some additional capacity in December 2014 when a new hotel opens, but where is AA redploying their assets now?
 
Venezuela747
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Fri Jun 20, 2014 8:22 pm

Do we know what the time for the daily flight that remains will be?
I assume CCS-MIA in the late morning and MIA-CCS at night.
ROLL TIDE!!!
 
luisde8cd
Topic Author
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Fri Jun 20, 2014 9:36 pm

Quoting Venezuela747 (Reply 82):
I assume CCS-MIA in the late morning and MIA-CCS at night.

I'd assume something different: morning departure from MIA and midday return from CCS. That way they avoid overnighting crew and aircraft.
 
Planesmart
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Fri Jun 20, 2014 9:58 pm

I presume the country is in default in rerspect to IATA settlement rules, as well as Visa and MasterCard.

Airlines will keep flying there, with capacity that matches those who have paid in externally sourced USD and other currencies.

Any services the airlines pay for in Venezuela reduce the overdue amount owed.

Wonder what exposure aircraft & engine manufacturers, leasing and finance companies have?
 
OB1504
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Sat Jun 21, 2014 5:57 am

Quoting Mah4546 (Reply 79):
The route is technically not discontinued, and will resume if/when AA is allowed to and the problem is solved.

   The service reductions are only loaded for July. Perhaps AA is being optimistic and hoping that this will spur the Venezuelan government into action before the end of the month.

Quoting luisde8cd (Reply 83):
I'd assume something different: morning departure from MIA and midday return from CCS. That way they avoid overnighting crew and aircraft.

   Especially since AA now avoids overnighting in MAR because they could no longer guarantee the safety of the crew.

The daily MIA-CCS flight will be AA979, departing MIA at 1050 and arriving CCS at 1335. The aircraft will turn AA914, departing CCS at 1445 and arriving MIA at 1845. The additional Saturday service will be AA967, departing MIA at 0915 and arriving CCS at 1155, turning AA968, departing CCS at 1310 and arriving MIA at 1710.

For MIA-MAR, AA1197 will operate on Thursdays and Saturdays, departing MIA at 1015 and arriving MAR at 1240, turning AA966, departing MAR at 1355 and arriving MIA at 1730.

All MIA-Venezuela service will be operated by 737-800 equipment.
 
Venezuela747
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Sat Jun 21, 2014 4:39 pm

Avoiding the crew overnighting makes sense, but I was thinking in terms of connecting traffic
ROLL TIDE!!!
 
Western727
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Sun Jun 22, 2014 4:22 pm

This is just sad. I hope things look up soon for Venezuela. I spent a week in Venezuela (mainly Puerto La Cruz, but I also spent a day flying on an AeroEjecutivos DC-3 to/from the town of Canaima and nearby Angel Falls) years ago and had a wonderful time.

The flights on AA, AVENSA and AeroEjecutivos were all great, though I recall my group of college spring breakers chuckling just after takeoff from MIA on an AVENSA 72S when folks started lighting up after the "no-smoking" light was extinguished. This was in 1997, long after smoking disappeared from US flights.

EDIT: clarification.

[Edited 2014-06-22 09:23:53]
Jack @ AUS
 
uberflieger
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RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Sun Jun 22, 2014 4:28 pm

I just heard yesterday American is adding a 2nd Saturday only CCS flight for July. Can anybody confirm this?
 
Venezuela747
Posts: 1378
Joined: Thu Jan 01, 2004 9:36 am

RE: AA Downsizes Venezuelan Ops From 48x To 10x Weekly

Mon Jun 23, 2014 1:45 am

Quoting uberflieger (Reply 88):

I just heard yesterday American is adding a 2nd Saturday only CCS flight for July. Can anybody confirm this?

Yeah I think this is what we are talking about with the 8x a week. One daily and two on saturdays
ROLL TIDE!!!

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