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Venezuela: Airline Ticket Prices to Increase by 300 percent

By: PanAm Post Staff - May 27, 2014, 9:40 am

EspañolThe Venezuelan Airline Association (ALAV) said on Monday that starting July 1 the government of Venezuela will modify the US dollar exchange rate for the sale of flight tickets. Tickets currently priced at the rate of 11 Bs. per US dollar will be sold at approximately 50 Bs. per US dollar, depending on the day’s fluctuations.

Minister of Economy and Finance Rodolfo Marco said on Twitter that the government has canceled its debts with four airline companies (AeroMexico, Insel Air, Tame Ecuador, and Aruba Airlines), and that two others were paid what they were owed until 2012 (Avianca and Lacsa-Tasa). As of Monday, the Venezuelan government owed US$3.9 billion in pending debts to 24 different airlines.

The International Air Transport Association (IATA) claims 11 airlines operating in Venezuela have reduced flight frequency between 15 and 78 percent in the last year, which makes purchasing airline tickets all that more difficult for Venezuelans.

A ticket to Washington D.C. today is worth about 30,000 Bs. (US$2,500), but it could end up costing as much as 125,000 Bs., 30 times the minimum wage in Venezuela. As a result, the policy shift announced on Monday could potentially further restrict Venezuelans international mobility.

Source: Reuters.