American Airlines made an announcements earlier this week that they would cut all the other flights between the United States besides ten weekly flights between Miami and Caracas.
American would no longer fly from Dallas, New York or San Juan. The airline has $750 million in the country that it has not been able to repatriate.
You can read more about this situation on BBC’s website here.
The IATA estimates that the airlines are owned $4 billion by the government that has not allowed the airlines to bring back the cash by converting them using the official. As a result many airlines have stopped serving the country or stopped selling tickets localy.
Here are some tidbits from the BBC piece:
Tight foreign currency controls make it difficult for foreign airlines to repatriate money from ticket sales in Venezuela.
The authorities have restricted access to dollars and want to make them more expensive to purchase, which may lead to losses for companies that are still waiting for cash from as far back as 2012.
The International Air Transport Association (Iata) estimates Venezuela is delaying payment of $4bn.
American Airlines is the largest foreign carrier serving Venezuela.
Air Canada has suspended service citing security concerns, while others like Lufthansa and Copa Airlines have reduced the number of tickets made available in local currency.
In January, Ecuadorean airline Tame also suspended flights to Venezuela, demanding $43m (£26m) in overdue payments for tickets.
President Nicolas Maduro said at the time that airlines that reduced their operations in Venezuela would face “severe measures”.
“The company that leaves the country will not return while we hold power,” said Mr Maduro.
Last month, the Venezuelan government announced a deal with six Latin American airlines that would allow them to repatriate revenue from sales in 2012 and 2013.
This may make my plan to visit Venezuela late in the summer bit more difficult and hopefully the government will do something regarding the currency exchange issue as well.