MOSCOW, August 5 (RIA Novosti) - A number of airlines, including Delta, American Airlines, Air Europa and Air France, have halted flights to and from Venezuela, as the country’s government has failed to repay them in dollars as promised earlier, Vocative.com reports.
The dispute comes after the airlines were misled by the government, which earlier talked them into selling tickets in bolivars in return for dollar revenues in the long run at official exchange rates.
The country’s government additionally banned airlines from taking income out of the country in dollars, which, according to the International Air Transport Association, comprises $4.1 billion in airfare. So far, Venezuela has only allowed them to take out $424 million.
The move has caused outrage among the airlines, inciting them to cut the number of flights both to and from the country. Vocative writes that the number of flights available in the country in August of 2014 is just 5 percent of the volume the previous year.
The government, however, pins the blame on the airlines. According to Vocative, officials argue the airlines have been offering flights at increased rates for successive years, which has led to many tickets being purchased for the purpose of getting access to dollars and euros at official rates and selling them later for profit on the black market.
Alongside passengers that include students going abroad for study, cargo planes carrying pharmaceutical supplies for patients in need of urgent treatments are similarly unable to fly in and out of the country.
Venezuela has recently declared that 21 out of 24 international air companies serving the country have filed their price lists with the country’s Air Transportation Authority to be approved following a new scheme for pricing control.
During the past year Venezuela has experienced a heavy economic downturn due to currency controls, overspending and other economic issues. The result was as deterioration in living conditions. It is feared the current situation will worsen the already unfavorable economic situation.
