Venezuela Airline Crisis Makes Travelers Ever More Inventive

Buses across jungle borders, boats through Caribbean waters and private flights from small airfields have become a new norm for departing Venezuela as a multi-billion dollar pay dispute turns the country into something of a ‘no-fly’ zone.

Major international airlines have slashed seat availability by half since last year, pulling many routes entirely in a spat with Venezuela’s socialist government about the repatriation of $3.6 billion (2.2 billion pounds) in ticket revenue.

The dwindling supply has sent prices spiraling for available seats, and led to a surge of more inventive travel itineraries via circuitous routes and other means. Venezuelans unable to afford private planes or find a rare seat on a commercial flight are taking more laborious trips across land and sea.

The airline problem, the latest manifestation of multiple strains across the Venezuelan economy, derives from a government requirement that domestic ticket sales be in local currency.

Some 24 airlines have built up the equivalent of $3.6 billion in bolivars but are unable to convert that money into hard currency, according to the International Air Transport Association (IATA). This is due to delays in authorizations from the government which, for over a decade, has operated strict foreign exchange controls.

Negotiations are underway and around a third of the airlines have reached agreements in principle but the terms are incomplete and “lack any form of guarantees”, Sinclair said.
International airlines have cut seat availability in and out of Venezuela by 49 per cent on last year, IATA said.

Major airlines including Air Canada and Alitalia earlier this year suspended all flights, citing safety concerns and difficulty in repatriating revenue. Alitalia began flying again earlier this month, though with a limited service.

A plethora of others, including American Airlines, Delta Airlines and United Airlines, slashed most but not all flights earlier this year. European airlines including Lufthansa and Iberia have also cut routes.