It shouldn’t come as a news to anyone that follows what happens internationally that Venezuela is about to collapse. Airlines operating from Venezuela have not been able to convert local sales to hard currency and expatriate them.
IATA estimates that there are close to $4 billion of airlines’ money trapped in the country. This must be using the “official” exchange rate which is less than $40 million on using black market one.
Getting to/from Caracas is becoming increasingly difficult due to airlines canceling or reducing frequencies.
When I was on a British Airways flight this morning and reading Financial Times there was an article Lufthansa canceling their thrice weekly route effective June 17, 2016. BBC was reporting on its international news today that LATAM is canceling Caracas too this Summer from its’ various hubs. It is unusual for the airlines to cease route with this little notice.
Air France, TAP, Iberia and Air Europa still continue to provide direct service from their respective hubs to Caracas. Copa continues to offer service from its Panama hub and Avianca from Bogota. American Airlines from Miami and United Airlines from Houston.
It is really unfortunate what is currently happening in Venezuela. The ever increasing shortages of basic food items and medication cannot continue indefinitely without something drastic happening.
This just proves that price controls and trying to keep the value of the currency at artificial level (you get 100 times more on the black market) cannot continue forever.