Venezuelan Tourism Chief Expects Debt Settlement To Bring Back Foreign Airlines

Venezuelan Tourism Chief Expects Debt Settlement to Bring Back Foreign Airlines

Venezuelan Tourism and Foreign Trade Minister Felix Plasencia told Sputnik that he was convinced that Caracas could bring foreign airlines back by negotiating a settlement on the debt owed to them soon

AMMAN (UrduPoint News / Sputnik - 19th November, 2019) Venezuelan Tourism and Foreign Trade Minister Felix Plasencia told Sputnik that he was convinced that Caracas could bring foreign airlines back by negotiating a settlement on the debt owed to them soon.

Venezuela owes foreign air carriers $3.8 billion in blocked funds, according to a June 2019 report by the International Air Transport Association.

"We are in discussion with them. We are convinced that we can settle the differences regarding our understanding of our financial differences," Plasencia said.

Venezuela requires foreign airlines to sell air tickets in local currency, despite years of hyperinflation, and has been reluctant to repatriate the proceeds under heavy Currency controls.

The growing debt mound caused many carriers to cut their services to the country.

"We are going to solve this problem, and we will have more airlines flying back ... European airlines and all the foreign lines will soon be flying back to us," the tourism minister promised.

Plasencia argued that the Venezuelan market was important to air travel, and the location of the South American country was "unique," offering "enormous" benefits.

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