Brazilian Airline suspends flights to Venezuela after failing to repatriate revenue

Samy Adghirni – Folha de S. Paulo, 02/10/16

After months of fruitless negotiations with the Venezuelan government over revenues of R$351 million (US $90.3 million) which are being held in Venezuela, the Brazilian airline Gol has decided to suspend its service between São Paulo and Caracas. The route has been running since 2007.

The problem derives from the complex exchange rate system in Venezuela, where the government operates various different rates.Gol had already reduced flight frequency from 28 a week to just two, since 2014. However, the impasse with Venezuela, along with the recession in Brazil, has led the company to follow the example of other airlines such as Air Canada and Alitalia and suspend its operations in Venezuela.

The problem derives from the complex exchange rate system in Venezuela, where the government operates various different rates.

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