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797
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Venezuelan President Threatens Foreign Carriers!

Fri Mar 14, 2014 9:17 pm

The eloquent Nicolas Maduro, in the midst of 28 continuous days of riots and protests in Venezuela, decided to threaten those carriers pondering a necessary retirement out of the country due to the +$3,2 billion debt the government hasn't paid back foreign carriers. American Airlines alone is owed ~$700 million.

Quote:
"There are excuses for airlines to reduce their flights to Venezuela. If an airline leaves or reduces their frequency, I'll take severe measures. If an airline leaves, it will not come back as long as I'm here"

In another thread there was a discussion on how Avianca is drastically reducing its services to Venezuela. American Airlines has downgraded from 4x daily 757 to 737s. Both IB and LH hae downgraded from A346 to A333. TP, AM, and CM have also reduced their visits to the Venezuelan capital.

As the cherry on top to his amusing threat, he added:

Quote:
If they [the airlines] leave, we'll have enough options to substitute them. That's why we have the new Conviasa. And there are many planes from the world coming in and I don't know how many airlines are asking for permission to cover flights to Panama, Central America and South America.

Interesting. Conviasa will substitute LH if they leave? How about AA? Does Conviasa have FAA/TSA permission to fly in US Airspace? Right.

I now wonder, what "measures" will this guy take? He owes $3,2 billion and has offered to pay back with fuel. Where's the cash?

Here's the article (in Spanish only)

http://www.elnuevoherald.com/2014/03...duro-aerolinea-que-se-vaya-de.html

[Edited 2014-03-14 14:21:57]

[Edited 2014-03-14 14:23:37]
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bennett123
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RE: Venezuelan President Threatens Airlines

Fri Mar 14, 2014 9:21 pm

If he is offering to pay in fuel, then I suppose it depends what effective fuel price he is using.
 
797
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RE: Venezuelan President Threatens Airlines

Fri Mar 14, 2014 9:22 pm

Quoting bennett123 (Reply 1):
If he is offering to pay in fuel, then I suppose it depends what effective fuel price he is using.

How many gallons of fuel (at whatever rate) are equivalent to $3,2 billion?

797
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bennett123
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RE: Venezuelan President Threatens Foreign Carriers!

Fri Mar 14, 2014 9:27 pm

www.bloomberg.co/energy

Brent Crude is $108.57

Your answer is 29,474,072 barrels.
 
SpaceshipDC10
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RE: Venezuelan President Threatens Foreign Carriers!

Fri Mar 14, 2014 9:36 pm

Quoting 797 (Reply 2):
How many gallons of fuel (at whatever rate) are equivalent to $3,2 billion?
Quoting bennett123 (Reply 3):
Your answer is 29,474,072 barrels.

Which makes 1,237,911,007 US gal
 
adriaticus
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RE: Venezuelan President Threatens Foreign Carriers!

Fri Mar 14, 2014 9:41 pm

Excuse my ignorance. would a fellow a.nutter be able to explain why is the Venezuelan government wittholding money from the foreign airlines "for 2013" (implying a full year)?

Is this related to government-paid travel, tax returns, or...?

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AR385
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RE: Venezuelan President Threatens Foreign Carriers!

Fri Mar 14, 2014 9:47 pm

Quoting adriaticus (Reply 5):
Excuse my ignorance. would a fellow a.nutter be able to explain why is the Venezuelan government wittholding money from the foreign airlines "for 2013" (implying a full year)?

Because they have no hard currency and they are cutting their foreign payments as much as they can. So far toilette paper, basic foodstuffs, electrodomestics etc. are very scarce so I assume they´ve decided to stop paying those who won´t make much noise.
 
797
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RE: Venezuelan President Threatens Foreign Carriers!

Fri Mar 14, 2014 9:53 pm

Quoting adriaticus (Reply 5):
Excuse my ignorance. would a fellow a.nutter be able to explain why is the Venezuelan government wittholding money from the foreign airlines "for 2013" (implying a full year)?

No ignorance my friend. There's been a currency board in Venezuela since the early 2000s. Airlines sell tickets originating in Venezuela at local currency. The government must convert those earnings into US Dollars, Euros, etc for the airlines to repatriate their money.

Because of corruption (among another million issues), these earnings haven't been repaid to the airlines, and have summed up to nearly $3.3 billion. Of course, airlines have monstrous amounts of Venezuelan cash in hands, though because of the country's ultra inflation environment, has become completely worthless.

797
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adriaticus
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RE: Venezuelan President Threatens Foreign Carriers!

Fri Mar 14, 2014 9:53 pm

Quoting AR385 (Reply 6):
Because they have no hard currency and they are cutting their foreign payments as much as they can.

Thanks AR385! Your post accurate and well-informed as usual. However, my question goes more to where did the debt come from in the first place? Why should the Maduro administration be giving the airlines all those dollars? What caused the debt?

I work for a cargo airline with 5X/week flights to VLN, and haven't heard nothing of the kind...

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larshjort
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RE: Venezuelan President Threatens Foreign Carriers!

Fri Mar 14, 2014 9:55 pm

The daily oil production in Venezualy in february was 2.87 million barrels a day. The average price of Venezuelan crude this year is ~$96.

That would equate to ~33.3 million barrels which would mean 11 days of oil production or 3% of the yearly production.

http://english.eluniversal.com/econo...put-in-venezuela-up-47-in-february
http://www.eluniversal.com/economia/...ket-drops-usd-211-ends-at-usd-9565
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AR385
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RE: Venezuelan President Threatens Foreign Carriers!

Fri Mar 14, 2014 10:03 pm

Quoting adriaticus (Reply 8):
However, my question goes more to where did the debt come from in the first place?

When you are a foreign entity operating in another country, you want to repatriate what´s left over from your costs and taxes to the country where you originate from. This would be your income. For example, AM wants its income in Mexico, not in Venezuela. In order to do that, you exchange that income from the local currency into a currency that you can exchange back in Mexico into Pesos. You can only do that with Euros and USD.

Due to the Venezuelan currency exchanges being a mess, it´s not as easy as doing this through a bank. You need the government to authorize the whole thing and actually release the USD or the Euros. For the whole of 2013 they have not done that. They simply have not enough USD or Euros to exchange Venezuelan currency into.

So the income of all these airlines is stuck in Venezuelan currency, which is useless for all intents and purposes. Since the government controls the availability of hard currency, then it is essentially a "debt" from the Venezuelan company to the airlines.

But it´s not just the airlines. Many different foreign companies in Venezuela are facing the same issue.

This is simplifying matters a bit, but that is in essence, the problem.

[Edited 2014-03-14 15:05:46]
 
tortugamon
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RE: Venezuelan President Threatens Foreign Carriers!

Fri Mar 14, 2014 10:05 pm

Quoting larshjort (Reply 9):
That would equate to ~33.3 million barrels which would mean 11 days of oil production or 3% of the yearly production.

Sure and if 737s were tankers where they could load up on fuel then maybe it could work. I personally don't see airlines chartering tankers to send to Venezuela to get the payment. Plus an airline can't do much with crude anyway. They would need to re-sell it to a refinery. All around this is a terrible situation and I wonder why airlines are still even operating the route. I can't imagine the currency that they do get justifies the route. Maybe they are legitimately worried they won't be allowed back.

tortugamon
 
adriaticus
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RE: Venezuelan President Threatens Foreign Carriers!

Fri Mar 14, 2014 10:15 pm

Quoting 797 (Reply 7):
Quoting AR385 (Reply 10):

Thanks to both! Your responses are perfectly clear.

It's a sad time for Venezuela. One cannot imagine a complete comeback with this government at the helm.

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peterinlisbon
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RE: Venezuelan President Threatens Foreign Carriers!

Fri Mar 14, 2014 10:19 pm

He's giving the rest of the world a taste of what life is like in Venezuela: do your business exactly the way I say, otherwise I'll take your business away from you and give it to one of my incompetant cronies (which I was planning to do anyway sooner or later). This is why this country is in turmoil and riots have been going on for over a month.

His government is running all of the country's businesses into the ground, and then when they put up prices or cut services he claims its part of some sort of worldwide conspiracy against Venezuela and it's so-called "revolution". Presumably he will be soon order Conviasa to take over all of the foreign airlines' routes with its flying scrapyard.
 
aklrno
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RE: Venezuelan President Threatens Foreign Carriers!

Fri Mar 14, 2014 10:24 pm

Quoting bennett123 (Reply 3):

www.bloomberg.co/energy

Brent Crude is $108.57

Your answer is 29,474,072 barrels.

I believe Venezuelan crude is a lower quality than Brent, thus it will be priced lower, and the volume required to pay the bill will be higher.
 
G500
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RE: Venezuelan President Threatens Foreign Carriers!

Fri Mar 14, 2014 10:25 pm

Sad what's happening in that country. World's largest oil reserves, and good location for tourism. All of that is being squandered by a few. Jeez
 
tortugamon
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RE: Venezuelan President Threatens Foreign Carriers!

Fri Mar 14, 2014 10:31 pm

I thought this Economist headline said a lot:

" Brazil is becoming Argentina, Argentina is becoming Venezuela and Venezuela is becoming Zimbabwe   "

not a good thing

tortugamon
 
blueflyer
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RE: Venezuelan President Threatens Foreign Carriers!

Fri Mar 14, 2014 11:32 pm

Quoting tortugamon (Reply 11):
All around this is a terrible situation and I wonder why airlines are still even operating the route.

They've learned their lesson and are acting accordingly. A few airlines are refusing payments in bolivar outright, but most take other measures, such as limiting the number of seats available for sale in bolivar or opening a flight to local sale only a few weeks before departure (and hoping nearly all the seats have been sold by then).

Quoting tortugamon (Reply 16):
" Brazil is becoming Argentina, Argentina is becoming Venezuela and Venezuela is becoming Zimbabwe"

Poor Zimbabwe...
 
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RE: Venezuelan President Threatens Foreign Carriers!

Fri Mar 14, 2014 11:43 pm

Quoting tortugamon (Reply 11):
Plus an airline can't do much with crude anyway. They would need to re-sell it to a refinery.

Delta could since they have their own refinery now. It may be the only way to get what they are owed out of Venezuela, and they may be able to recover more of what they are owed than their competition because of the refinery.
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hotelkilo
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RE: Venezuelan President Threatens Foreign Carriers!

Sat Mar 15, 2014 12:44 am

Quoting adriaticus (Reply 8):

A cargo flight could require just one easy payment in usd from the broker(?) Meanwhile for regular passenger flights each pax originating in venezuela make their purchase using local currency and here is the end result.

HK
 
tortugamon
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RE: Venezuelan President Threatens Foreign Carriers!

Sat Mar 15, 2014 12:50 am

Quoting toltommy (Reply 18):
Delta could since they have their own refinery now. It may be the only way to get what they are owed out of Venezuela, and they may be able to recover more of what they are owed than their competition because of the refinery.

I've read another article that they will be paid in jet fuel, not crude oil. That is in addition to bonds and some cash as well. I am not sure you can believe anything at this point.

I don't believe Delta is a significant player in that market (in fact I can't find one flight).

tortugamon
 
Pyrex
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RE: Venezuelan President Threatens Foreign Carriers!

Sat Mar 15, 2014 12:59 am

Quoting toltommy (Reply 18):

Delta could since they have their own refinery now

Venezuelan crude oil is of very low quality (heavy on sulfur) and there are only a few refineries around the world that can process it, don't think Delta's is one of them.
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N328KF
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RE: Venezuelan President Threatens Foreign Carriers!

Sat Mar 15, 2014 1:01 am

Quoting toltommy (Reply 18):
Delta could since they have their own refinery now. It may be the only way to get what they are owed out of Venezuela, and they may be able to recover more of what they are owed than their competition because of the refinery.

Venezuelan crude is a nastier and less useful grade than that which comes from other regions. This is why, despite the enormous amount of oil, the country is not doing well enough to truly dictate terms to anyone.
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Okie
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RE: Venezuelan President Threatens Foreign Carriers!

Sat Mar 15, 2014 1:09 am

Let me add a few things here to the discussion.

Quoting toltommy (Reply 18):
Delta could since they have their own refinery now

The answer is no because DL's refinery (Trainer) the best I can tell does not have the capability to deal with the high sulfur oil from Venezuela.
I think there are only two maybe three refineries that can deal with the high sulfur crude located in the US.

Quoting AR385 (Reply 10):
. For the whole of 2013 they have not done that. They simply have not enough USD or Euros to exchange Venezuelan currency into.

Let me add a little here. Venezuela's main source of USD was from oil exported to the US. When the Bakken play started hitting the US refineries that cut import oil from Venezuela by 30+%.
That has basically cut Maduro's source for USD by about 1/3.

He desperately needs those USD.
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N776AU
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RE: Venezuelan President Threatens Foreign Carriers!

Sat Mar 15, 2014 1:54 am

Quoting 797 (Reply 7):
No ignorance my friend. There's been a currency board in Venezuela since the early 2000s. Airlines sell tickets originating in Venezuela at local currency. The government must convert those earnings into US Dollars, Euros, etc for the airlines to repatriate their money.

Because of corruption (among another million issues), these earnings haven't been repaid to the airlines, and have summed up to nearly $3.3 billion. Of course, airlines have monstrous amounts of Venezuelan cash in hands, though because of the country's ultra inflation environment, has become completely worthless.

That sounds like a great excuse for an airline never to fly to Venezuela. Why go through the trouble and take the risk?
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prebennorholm
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RE: Venezuelan President Threatens Foreign Carriers!

Sat Mar 15, 2014 2:44 am

Quoting N776AU (Reply 24):
That sounds like a great excuse for an airline never to fly to Venezuela. Why go through the trouble and take the risk?

I think that the airlines are fully aware of what they are doing. They have assembled a mountain of bolivars which according to Maduro's completely artificial exchange rate equals some $3+bn. They will never get that money, they likely never should get that money, and they likely never expected to get that money.

Maduro's exchange rate is only for his personal friends to produce $$$ from bolivars. Yes, that is state organized theft from own citizens. And so what? It happens all over in that sort of countries.

It's not first time international airlines fly to countries with non-convertible currencies. The airlines take their precautions. They charge high fares. And they limit the seats available to artificial money.

If AA for instance limits seats paid with bolivars to 50%, and they charge everybody double fares, then they make money on doing the flights anyway. And if one day they get a little for their bolivars, then it is only an extra bonus.

There is no reason to assume that the airlines are naive. They are professional businesses which know what they are doing.

If Venezuela should become a normal country tomorrow, then the bolivar will find its real value on the exchange market at a tiny fraction of Maduro's rate. And those airlines will go to the bank and cash in a few million dollars, a hundred if they are lucky. And they will be happy. Game over.
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davs5032
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RE: Venezuelan President Threatens Foreign Carriers!

Sat Mar 15, 2014 2:45 am

Oh, the joys of socialism..  
 
tyler81190
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RE: Venezuelan President Threatens Foreign Carriers!

Sat Mar 15, 2014 3:44 am

Quoting blueflyer (Reply 17):
Quoting tortugamon (Reply 16):
" Brazil is becoming Argentina, Argentina is becoming Venezuela and Venezuela is becoming Zimbabwe"

Poor Zimbabwe...

That my friend made me fall out of my chair laughing!!!

I just hope Venezuela doesn't become Sudan
 
strfyr51
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RE: Venezuelan President Threatens Foreign Carriers!

Sat Mar 15, 2014 4:30 am

Quoting Pyrex (Reply 21):
Venezuelan crude oil is of very low quality (heavy on sulfur) and there are only a few refineries around the world that can process it, don't think Delta's is one of them.

High sulfur crude takes much higher cracking temperatures to refine. Any refinery can do it but the added expense might be cost prohibitive.
That's why West Texas intermediate, Saudi light sweet Crude, and North sea Brent are the Preferred oils,
Pennsylvania heavy crude is excellent for Greases, Gear oils, and Asphalt products..
I don't really know the makeup of Venezuelan Crude but I started college as a Petroleum Engineer before I switched to Aviation Maintenance Management to finish school faster.
 
SCL767
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RE: Venezuelan President Threatens Foreign Carriers!

Sat Mar 15, 2014 4:49 am

Quoting tortugamon (Reply 20):
I don't believe Delta is a significant player in that market (in fact I can't find one flight).

DL flies ATL-CCS daily with the 757: http://flightaware.com/live/flight/D...1/history/20140314/2130Z/KATL/SVMI
 
roseflyer
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RE: Venezuelan President Threatens Foreign Carriers!

Sat Mar 15, 2014 3:00 pm

If you look at fares to Caracas, economy advanced purchase from MIA tends to average $1000-2000. For US originating passengers, the RASM is actually very high. Refusing to sell advanced purchase tickets to passengers who want to pay in bolivars helps. Restricting traffic has cut demand, but in reality for those passengers actually flying, revenue is high.

[Edited 2014-03-16 07:46:02 by SA7700]
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readytotaxi
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RE: Venezuelan President Threatens Foreign Carriers!

Sat Mar 15, 2014 3:12 pm

Quoting SpaceshipDC10 (Reply 4):
Which makes 1,237,911,007 US gal

That will fill up my chevy Camaro SS a few times. 
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luisde8cd
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RE: Venezuelan President Threatens Foreign Carriers!

Sat Mar 15, 2014 3:23 pm

Quoting Roseflyer (Reply 31):
If you look at fares to Caracas, economy advanced purchase from MIA tends to average $1000-2000. For US originating passengers, the RASM is actually very high. Refusing to sell advanced purchase tickets to passengers who want to pay in bolivars helps. Restricting traffic has cut demand, but in reality for those passengers actually flying, revenue is high.

Correct. Basically what's happening is that U.S. originating pax are "subsidizing" those lucky few Venezuela-originating pax that managed to get a hold of a seat.

I expect loads to/from CCS to be low during 2014, especially as it's almost impossible for Venezuelan-originating pax to purchase tickets with more than 15 days in advance. Why is this an issue? Well as there's no hard currency in the country, if you as a tourist want to travel abroad, you are allowed to request the govt. permission to buy up to $3000 USD/year/person. In order to get this govt. permission, you need to submit paperwork (including eTicket receipt) with at least 2-3 weeks before departure date. Therefore, those that don't have hard currency and depend on this govt. authorization (majority of population) will not be able to travel. As simply as that....

Regards,
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tortugamon
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RE: Venezuelan President Threatens Foreign Carriers!

Sat Mar 15, 2014 4:41 pm

Quoting tyler81190 (Reply 27):
just hope Venezuela doesn't become Sudan

I am not sure what you mean. Sudan economy is relatively stable and inflation and exchange rates are relatively stable. I think the people of Venezuela would love those characteristics right now. The comparison the Economist was making was that of monetary policy.

Quoting SCL767 (Reply 29):
DL flies ATL-CCS daily with the 757

Well that goes to show you how they are booking the tickets because I specifically looked at a bunch of dates and couldn't find a single ticket. I know its technically supposed to exist but I couldn't find it. Thanks.

tortugamon
 
OM617
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RE: Venezuelan President Threatens Foreign Carriers!

Sat Mar 15, 2014 5:01 pm

Quoting 797 (Reply 7):
Quoting AR385 (Reply 10):

Thank you both for your clarifications.

Just wondering how it works in this scenario:
"Juan" lives in MIA, his padres live in CCS. Juan wants to buy them tickets so they can visit him in MIA.
May he get the tickets directly from AA (for example) without restrictions, such as the advance purchase limitations that
Venezuelans are subject to and limited seat availability? Would it be better for him to go to a mom-and-pop travel agency?
Are the fares going to be in the same range as flights originating in MIA, as described above, or is it more cost-effective
to take, say AV and transit in BOG?

Sorry for all the questions. Any help is appreciated.

OM617
 
Gabrielz
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RE: Venezuelan President Threatens Foreign Carriers!

Sat Mar 15, 2014 5:12 pm

OM617:

AA will sell CCS originating tickets in dollars to anyone, anywhere, anytime. But if you want buy them in VEF (the currency of Venezuela) you can only buy them in country, and AA has severely limited the number of seats it will sell from there. USD-based fares to and from Venezuela are super high.

The cheapest way to get to CCS is via AUA (Aruba).

G
 
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RE: Venezuelan President Threatens Foreign Carriers!

Sat Mar 15, 2014 5:22 pm

Quoting SCL767 (Reply 29):
DL flies ATL-CCS daily with the 757: http://flightaware.com/live/flight/D...1/history/20140314/2130Z/KATL/SVMI

Speaking of which, did you notice that the flight is blocked as a 757-300 the next few days (as far a flightaware shows)? IF true and not just a flightaware glitch, it's a bit ironic that DL is upguaging service while others are damn near pulling out.
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LAXintl
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RE: Venezuelan President Threatens Foreign Carriers!

Sat Mar 15, 2014 5:47 pm

Reminds me of Nigeria in early 1980s.

They had quite similar issues and were forcing airlines to sell tickets in the worthless local currency and also had huge sums of hard currency locked up.

Basically Nigerian government told airlines they would receive zero money if they pulled out and opted to wage a political or economic war on the nation.

Most prominent BA and Sabena opted to stay, and eventually got chunks of their money later in the decade as things recovered.

[Edited 2014-03-15 10:50:54]
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Flopped
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RE: Venezuelan President Threatens Foreign Carriers!

Sat Mar 15, 2014 10:57 pm

Tiara Air Aruba just lost its route to FLL after cutting back to a small handful of flights. Most of the passengers were from CCS to FLL via AUA. Tiara apparently was heavily invested in Venezuela and couldn't get money fast enough or it was gone. They weren't paying anyone.. employees, their ground handlers, the FLL airport authority, Falcon Air who flew their route on MD80s when their 737 was out for maintenance... I don't know what the future is for Tiara if they're even still in business. Maybe they will continue island hopping until they can find another niche.
 
tyler81190
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RE: Venezuelan President Threatens Foreign Carriers!

Sat Mar 15, 2014 11:04 pm

Quoting tortugamon (Reply 34):
I am not sure what you mean. Sudan economy is relatively stable and inflation and exchange rates are relatively stable. I think the people of Venezuela would love those characteristics right now. The comparison the Economist was making was that of monetary policy.

I was talking more the actual country, war torn, etc... not just the economy.
 
SCL767
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RE: Venezuelan President Threatens Foreign Carriers!

Sun Mar 16, 2014 9:28 am

Quoting MesaFlyGuy (Reply 37):
it's a bit ironic that DL is upguaging service while others are damn near pulling out.

DL will soon deploy the 738 daily on the ATL-CCS route. I would not be surprised if DL eventually deployed the 73G on the route...
 
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par13del
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RE: Venezuelan President Threatens Foreign Carriers!

Sun Mar 16, 2014 12:29 pm

Quoting 797 (Thread starter):
As the cherry on top to his amusing threat,

Threats by government officials are only amusing until they implement something, and they always implement something, then the laughter stops.

Quoting peterinlisbon (Reply 13):
This is why this country is in turmoil and riots have been going on for over a month.

His government is running all of the country's businesses into the ground, and then when they put up prices or cut services he claims its part of some sort of worldwide conspiracy against Venezuela and it's so-called "revolution".

His government has been in power how long..... I find it hard to believe that the society - private, public and international interest - would allow the government to send the country so deep into debt in such a short space of time, perhaps the seeds were there a long time ago and everyone ignored it?

Quoting Pyrex (Reply 21):
Venezuelan crude oil is of very low quality (heavy on sulfur) and there are only a few refineries around the world that can process it, don't think Delta's is one of them.

If Venezuela has its own refineries what is needed is a gasoline tanker, similar to those that ply the Caribbean seas bringing gas to those smaller countries who do not have their own refineries. DL as the owner of such a facility should be able to charter, lease, own or borrow one to go down and load up, once you have the gas it can be sold very easily, including to Caribbean countries if too much red tape exist on the US side.
 
76er
Posts: 695
Joined: Mon Mar 12, 2007 8:04 pm

RE: Venezuelan President Threatens Foreign Carriers!

Sun Mar 16, 2014 12:33 pm

Don't know if it has been mentioned here yet, but AF has suspended ticket sales in Venezuela since january and will reduce seat capacity by 45% as of next month.
 
2travel2know2
Posts: 2927
Joined: Mon Apr 26, 2010 3:01 pm

RE: Venezuelan President Threatens Foreign Carriers!

Sun Mar 16, 2014 5:34 pm

Quoting 797 (Thread starter):
TP, AM, and CM have also reduced their visits to the Venezuelan capital.

CM hasn't reduced any frequencies to Venezuela, but CM has down-graded equipment on most of its routes there from PTY, MDE and BOG.
I'm not on CM's payroll.
 
SJOtoLIR
Posts: 3012
Joined: Thu Jul 19, 2007 12:41 pm

RE: Venezuelan President Threatens Foreign Carriers!

Sun Mar 16, 2014 9:58 pm

Quoting 797 (Thread starter):
CM have also reduced their visits to the Venezuelan capital

Copa Airlines mainline:
CM PTY-CCS 3x daily
CM PTY-MAR 1x daily
CM PTY-VLN 1x daily

Copa Airlines Colombia:
CM BOG-CCS 2x daily
CM MDE-CCS 1x daily

Regards.
"Goin' up to the spirit in the sky"
 
User avatar
copa330200
Posts: 192
Joined: Fri Jan 21, 2011 4:59 am

RE: Venezuelan President Threatens Foreign Carriers!

Mon Mar 17, 2014 1:45 am

Quoting prebennorholm (Reply 25):
There is no reason to assume that the airlines are naive. They are professional businesses which know what they are doing.

  

definetely they are not naive !!! Airlines were always aware of the risk of doing business in Vzla and they have already incorporated the risk on the rates, just look at the rates they are charging in/out of Vzla., they are just amazing!!   

Quoting prebennorholm (Reply 25):
If Venezuela should become a normal country tomorrow, then the bolivar will find its real value on the exchange market at a tiny fraction of Maduro's rate. And those airlines will go to the bank and cash in a few million dollars, a hundred if they are lucky. And they will be happy. Game over.

  

100% aligned, airlines as most of multinational companies are awaiting for better times in Vzla to keep doing business & profits there   
On the run !!!
 
travelin man
Posts: 3238
Joined: Tue Mar 14, 2000 10:04 am

RE: Venezuelan President Threatens Foreign Carriers!

Mon Mar 17, 2014 5:30 pm

It's like "Atlas Shrugged" come to life.....
 
luisde8cd
Posts: 2444
Joined: Thu Aug 12, 2004 12:02 am

RE: Venezuelan President Threatens Foreign Carriers!

Mon Mar 17, 2014 8:57 pm

Air Canada has just suspended operations to/from CCS.

http://www.aircanada.com/en/news/trav_adv/140317.html

Regards,
Luis
 
RICARIZA
Posts: 2029
Joined: Sat Apr 02, 2005 7:56 am

RE: Venezuelan President Threatens Foreign Carriers!

Tue Mar 18, 2014 10:56 am

Quoting luisde8cd (Reply 47):
Air Canada has just suspended operations to/from CCS.

Ouch... I hate that this is happening, but Airlines after all are businesses who need to have profits.. it is understandable.
I miss ACES, I am proud of AVIANCA & I am loyal to AMERICAN
 
PanHAM
Posts: 9719
Joined: Fri May 06, 2005 6:44 pm

RE: Venezuelan President Threatens Foreign Carriers!

Tue Mar 18, 2014 11:17 am

What is happening in Venezuela is theft by the government. They Keep foreign monies, they violate bi-lateral Agreements and they threaten and ridicule the carriers when they cancel flights or stop serving the Country altogether.

Most of all, they are hurting their own People by cutting vital links and infrastructure. It is not only passengers but freight as well that cannot reach the Country any longer. Or be exported. Even Ecuador, politically similar woven as Venezuela, provides for means to exports perishables and what Little else they have.
Was Erlauben Erdogan!!!

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