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Curacao government called on to save local airline
Published on March 15, 2014 Email To Friend    Print Version

An Insel Air MD80 aircraft

WILLEMSTAD, Curacao -- Curacao Airport Holding (CAH), together with the Curacao Tourism Bureau (CTB) and the Curacao Hospitality and Tourism Association (CHATA), believes that the government should help Insel Air with their dire financial situation.

“Disappearance of the aviation company would be disastrous for the Curacao economy and we can’t allow this,” CAH Director, Maurice Adriaens said in an interview with the local newspaper Extra.

Adriaens confirmed that the three organizations have sent a letter to the government with requesting help for the local aviation company. It is known that Insel Air is going through some financial difficulties because of the situation in Venezuela. Insel Air has about $80 million dollars stuck in the South American country.

According to Adriaens, the three organizations explained in the letter that it is worthwhile saving the airlines due to the important position the company has for the island’s economy. The government itself has recently requested advice on how it can save Insel Air.

The letter was sent to the government together with a proposal on how to save the company. Adriaens indicated that he believes the government will deal with this issue as soon as possible and hopefully, in the coming days, will call the various stakeholders to meet and come up with a solution.

Adriaens said, “Insel Air’s biggest problem is Venezuela. It has a lot of money stuck in that country. We have to find a solution on how to get that money or to receive it in kind in the form of fuel or other products. But we have to find a sustainable solution, because we cannot forget that, due to the company’s situation, it has a lot of debt to different other companies in Curacao. They are all private companies and they have to receive their payment otherwise they will have to close their doors. The situation is urgent and we have to find a solution in a short time.”

CAH has also asked the Curacao Airport Partners (CAP) to withhold action against Insel Air. CAH has not been collecting payments from CAP for two weeks now. CAP has shown understanding for the situation but the debt is accumulating and the risk is increasing. If the government decides that it will not help Insel Air then it will have serious consequences for the company and it will affect others. The director recognized that the effects will be great if Insel Air is declared bankrupt.
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