Friday, January 24th 2014 - 03:33 UTC

Ecuador airline suspends flights to Venezuela because of tickets' debts

Ecuadorean airline Tame has suspended flights to Venezuela, demanding 43m dollars in overdue payments for tickets. Some 80 passengers were left stranded on Thursday at the airport in the Ecuadorean capital, Quito. Tame says the Venezuelan Central Bank has not transferred any money to its account in Ecuador since April 2013.

Venezuela has not transferred any money to TAME since April 2013

Tough foreign currency controls make it difficult for foreign airlines to repatriate money obtained from ticket sales in Venezuela.

The government of President Nicolas Maduro is believed to owe more than 3bn dollars to several airlines, according to Venezuela's Airline Association.

The 43m owed by Venezuela to Tame amounts to one third of the company's yearly revenue, according to Quito's El Comercio newspaper.

The daily 2 1/2-hour flight service between Quito and the Venezuelan capital, Caracas, was inaugurated in 2012 and was usually 90% full, said a company director.

Local reports say negotiations to have the debt settled failed. Venezuelan officials had offered to pay part of the debt in government bonds and aviation fuel.

On Wednesday, the Venezuelan government announced measures to address its foreign currency crisis. Venezuelans travelling aboard will no longer be allowed to obtain foreign exchange and pay for their tickets at the official rate of 6.3 bolivars per US dollar. They will have to pay a higher, market rate.

The official exchange rate will be restricted to essential goods, such as medications, food and industrial supplies.

29 comments Feed

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1 ilsen (#) Jan 24th, 2014 - 04:21 am Report abuse
“Venezuelans travelling aboard will no longer be allowed to obtain foreign exchange and pay for their tickets at the official rate of 6.3 bolivars per US dollar. They will have to pay a higher, market rate. ”

Sadly MP does not make this clear. Do they mean the 11.5 rate or the real rate which is hovering around 72 to 1?
2 LEPRecon (#) Jan 24th, 2014 - 06:34 am Report abuse
But...but...I thought that all South Americans were one big happy family, and that money didn't matter...etc...

Oh right, money does matter, especially when a country owes it to you and won't pay it back.

Perhaps Venezuela should call in it's markers from Argentina and Cuba, so they can pay off their debts?
3 Captain Poppy (#) Jan 24th, 2014 - 10:18 am Report abuse
How dumb does leadership have to be to have the world's largest oil reserves and be not only poor but broke? He literally drove them off a cliff.
4 ChrisR (#) Jan 24th, 2014 - 12:04 pm Report abuse
Now let me think.

Didn't Yankeeboy predict this when the original article appeared.

YES, he did. Cut another notch in the revolver grip Yankeeboy!
5 Briton (#) Jan 24th, 2014 - 02:14 pm Report abuse
Later.
6 Conqueror (#) Jan 24th, 2014 - 02:28 pm Report abuse
@2 I thought there was an example of how to get round “controls”. Don't you pack loads of the foreign currency required into a suitcase, holdall, rucksack or whatever and then take it to where it's required? The largest U.S. banknote is $100. Who can say how much space 430,000 banknotes would take up? Or is Venezuela short of dollars?
7 ilsen (#) Jan 24th, 2014 - 05:04 pm Report abuse
@6 short? I would say desperately short (why is the 'street' price x11?) The Government hasn't got any, that's why, see;
www.eluniversal.com/economia/140118/the-bolivar-among-most-overvalued-currencies-in-the-world
8 Troy Tempest (#) Jan 25th, 2014 - 12:39 am Report abuse
Air Canada announced that it suspended its flights to Venezuela today.
9 St.John (#) Jan 25th, 2014 - 03:18 am Report abuse
It is not just Ecuador's TAME airline (and as Troy Tempest writes in # 8, Air Canada), the offices of American Airlines, Delta, United and Panama's Copa were all either closed or had halted sales for several hours on Friday as the higher exchange rate took effect, adding to uncertainty as carriers try to collect $3.3 billion they say they're owed by the socialist government.

An Associated Press report here: www.chron.com/news/world/article/Airlines-halt-ticket-sales-in-Venezuela-5171647.php
10 Philippe (#) Jan 25th, 2014 - 03:17 pm Report abuse
Listen Tame:
These days it is undoubtedly a much better business to fly to N. Waziristan
than to Venezuela.

Philippe
11 ilsen (#) Jan 27th, 2014 - 01:24 am Report abuse
Excellent article from the economic 'front line' written by a businessman, producer in venezuela right now

daniel-venezuela.blogspot.co.uk/2014/01/will-venezuela-default-on-its-debts.html?showComment=1390785699167&m=1#c2698826597483986653

really worth a look, succinct and clear with great insights. I've been following this blog for sometime. Highly recommend!
12 Heisenbergcontext (#) Jan 27th, 2014 - 05:26 am Report abuse
@11 ilsen

“Religious sectarianism”. As good a description as any I have read.
13 Lone American survivor (#) Jan 27th, 2014 - 09:16 am Report abuse
We suggest you to avoid going to Latin America!
1. They dislike white-skinned gringos - People in South America love to smoke their cigars and/or cigarettes to your face because they enjoy intimidating to stir up white-skinned gringos! Don’t be duped yourself by trusting their sinister smiling faces! They will go after you for your money.
2. Notorious corruption and bribery are rife everywhere.
3. Massive poverty are everywhere.
4. Inefficient service and eroded infrastructures are very common.
5. Incompetent and corrupted government create huge problem.
6. A lack of freedom and happiness are facts for Latin America.
7. Anti-Americanism propaganda educational media indoctrinating school children.
8. Heaps of garbage are everywhere - no waste baskets, no workable toilets, and incredible strong urinal aroma everywhere!

Read these quotes if you don't know what are these true meaning of Marxist corrupted system. That's what they doing right now!

“The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.”

“The best way to destroy the capitalist system is to debauch the currency.”

“Democracy is indispensable to socialism.”

Why did so many immigrants from Latin America come to work and live in USA? Think about that! Therefore, South America really sucks!
14 Captain Poppy (#) Jan 27th, 2014 - 01:33 pm Report abuse
You're an American also? Sounds like you had a terrible visit to SA? The anti American sentiment is a world wide flavor from our own doing. Though I've never seen it in SA. Must be the people we each visit there.
15 ilsen (#) Jan 27th, 2014 - 04:53 pm Report abuse
@14 hmmm...
@13 doesn't write like an American (USA), language construction is similar to Portuguese or Spanish. looks translated. I would guess an educated immigrant to the US, and an embittered one at that. I am I correct @13?
Apart from #1 (I've never experienced that!) I must say that MOST of the other points (2-8) are fairly true to some degree for the current situation in Vnzla. Sad but true.
I won't comment on the quotes, but I can say the state educational materials and state-controlled TV do promote an anti-capitalist stance and it is not unusual for prominent members of Gov. to refer to the USA as the “Empire” or even 'Satan'...
I can't comment on the other ALBA countries but I do know that the Chavistas push this doctrine in exchange for subsidised oil (not that Vnzla can afford to do that anymore).
IMO the sooner Maburro's so-called government implodes the better. However I believe the situation will get a lot worse first as the soon-to-come military dictatorship will be able to keep sucking at the oil-teat to prop up their regime.
Sad but true
16 Captain Poppy (#) Jan 27th, 2014 - 05:13 pm Report abuse
BTW #13 WHO is we?
17 Lone American survivor (#) Jan 28th, 2014 - 01:56 am Report abuse
@15 ilsen and @16 Captain Poppy. Your statements burst my laugh. You assumed me as Portuguese or Spanish because of my poorly English written? LOL! No fat chance! US government knew me well. I am a native American - born in LA and lived in Northern Virginia. I am a well-experienced world traveler over 100 countries and bicycle in many places. We knew the people who wrote excellent English written and they are Spanish! Don't assume that a poor English writer came from Spanish or non-English. That is fallacy. Your mention about educated immigrants in US is generally false. A majority of immigrants from Latin America to come to US were impoverished, and they work in low median job fields such as gardeners, restaurateurs, constructors, service-related labors, and even, managerial jobs at fast-food restaurants. Remarkably, we are a damn proud of being Americans because we treat them well, we hired them, and we gave them opportunities! Wow!

Since I am white gringo in Latin America, Latin American countries treat me a shit here - disrespected, discriminated, prejudice, and ignorance! People here in South America laughed with rolled up their eyeballs at me when they saw me as a dumb-ass American tourist. They had been brainwashed by anti-Americanism propaganda-ployed mass media with Marxist-driven minded governments who loathe the American culture, innovation, and prosperity. That made them envious!

I am hearing impaired and blinded in one eye. I am proud of American disability because America serves us to respect and promote the opportunity to endeavor our excel and freedom! Latin American government have no attitude for supporting disabilities and their rights. Governments are too busy to hate US dollars, and are attempting to manipulate the people to support government's justifications with distort American images. That made corrupted and inefficient Latin America to be poor! Freedom always prevails! That made American uniqueness!
18 ilsen (#) Jan 28th, 2014 - 03:19 am Report abuse
@17 LAS ... umm... ok. You are a US citizen. Ok. I get it.

you say 'here in South America people laughed at me' I am interested to know what country you are in, because not all countries there have government s with the same Marxist ideology. Genuine question. I am interested.
Also, can you contribute anything to the topic? The fact that many airlines are pulling out of venezuela? Again, genuine question. Why do you think this is happening?
19 Captain Poppy (#) Jan 28th, 2014 - 10:14 am Report abuse
A native American on top of just an American.........mmmmmm, sure, ok. Happy that I can “burst” your laugh.
20 ilsen (#) Jan 28th, 2014 - 06:08 pm Report abuse
Hey Cap'n just don't burst my bubble! This sounds like Axel or a similiar troll, but in a photo-negative, wierrd, very wierrrd way, but kind of wierdly amusing too...
We should put Lone Ass and Stevie in a play-pen together. Hell, we could even take side-bets. We'll open a sports-book on the new sport of Troll-Fighting, we'll be rich beyoind our wildest dreams, rich I tell you!

(oops! I seem to have been infected with Troll-Fever, off to get a Sanity jab, back soo, ta-tah for now! xx)
21 Troy Tempest (#) Jan 28th, 2014 - 09:30 pm Report abuse
20 ilsen

The Trolls are upping their game.

We also have the appearance of “Andrea _ LAST 385”, a “University student” who is researching EU / Mercosur, and “Argentina and Uruguay” in particular.

Lo & behold, “Stevie” appears! How fortunate that he is the 'perfect' person to answer all such questions, and a very convenient opportunity to give his insightful 'view of the world' for all students craving that knowledge.

Have a read, have a chuckle !!!
22 Captain Poppy (#) Jan 29th, 2014 - 12:19 am Report abuse
ilsen on the surface it sounds promising, troll fighting, but..........who would fight....they can't defend themselves. They don't die either because they certainly don't know death when it surrounds them.
23 ilsen (#) Jan 29th, 2014 - 04:49 am Report abuse
@21 TT - oh those naughty trollitos...
What thread is it on? I could do with a giggle
@22
Ah, yes Captain, you are quite correct. I didn't think it through, research the market nor perform due diligence. I was about to rush off and borrow $900 billion squillion to finance the deal as well. Thanks for putting me straight.
(must get another Sanity Jab,,, that Trol-Fever infection is proving hard to shift!)
24 Troy Tempest (#) Jan 29th, 2014 - 06:06 am Report abuse
23 ilsen

try
en.mercopress.com/2014/01/22/uruguay-warns-trade-negotiations-with-eu-could-leave-a-mercosur-member-out

22Poppy
Think of the imaginative names the Troll contestants would have for the ring...

“Nostrilll-Teennn-Trolll...”
“Brassierohh... the Innn-arrr-tic-culate”
“Paull-ohhh... the Dee-fenss-lesss... Seeee-menntt... Mixerrrr... ”

etc.
25 ilsen (#) Jan 29th, 2014 - 09:25 am Report abuse
Ah, yes I see. Thanks Troy
26 Captain Poppy (#) Jan 29th, 2014 - 09:56 am Report abuse
Ohhhh the list goes on and on of the names. Funny you choose those three names as we all know what the common denominator to them is......the same puppeteer......lol.
It seems even Axel has another ID....it's easy to pick from his syntax....lol Claiming to be a native American.......REALLY poor language. He must be speaking in Lakota.
27 Troy Tempest (#) Jan 29th, 2014 - 01:40 pm Report abuse
26 Poppy

LOL !!

You may be right about the new poster - and who would dare tease a disabled person ?

I just saw your Axle Aargh impression on the other thread - Yup!! You nailed it - senseless gobbledygook !!

:-D
28 Captain Poppy (#) Jan 29th, 2014 - 04:07 pm Report abuse
lol......they are all on the edge and have lost it. Must be some mighty good kool-aid.
29 ilsen (#) Jan 29th, 2014 - 06:19 pm Report abuse
--- Official Bolivarian ‘Wonderland’ Exchange Rate in Venezuela
BCV 6.3Bsf / 1USD
SICAD 11.3Bsf /1 USD (Ancillary Foreign Currency Administration System)
---- reality check ---
Blue or ‘lechuga verde’
79.62 Bsf / 1USD
Bsf 105.64 / 1 Euro
See dolartoday.com/
To show how different exchange rates impact normal consumers in Venezuela, Reuters calculated that a McDonald's Big Mac Combo would cost $2 at a black market exchange, $14 at the Sicad rate and $25 at the official exchange rate.

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