Venezuela cuts commercial ties to Air Canada
The Venezuelan government said Tuesday it is severing commercial relations with Air Canada after it suspended flights to the country for security reasons.
"We are putting an end to this commercial relationship with Air Canada until President Nicolas Maduro decides otherwise," Venezuela Transportation Minister Herbert Garcia said.
Air Canada said Monday on its website it was suspending its flights to Venezuela for security reasons at a time when anti-government unrest has left 29 dead.
Garcia said the Venezuelan government was "surprised" by Air Canada's decision to suspend the flights, which was taken without consulting it.
Other airlines also have been scaling back their operations in Venezuela, apparently because of the government's delays in reimbursing them for tickets sold in the country.
In Venezuela, airlines are required to sell tickets in bolivars under an arrangement in which the government later converts the local currency to dollars.
But the International Air Transport Association says the government has made no dollar payments to the airlines since October, running up a $3.7 billion backlog.
Tony Tyler, who heads IATA, said Wed-nesday: "Airlines certainly cannot sustain operations indefinitely if they can't get paid."
Venezuela's President Nicolas Maduro responded on Saturday, warning airlines of "severe measures" if they reduced their operations. "The company that leaves the country will not return while we hold power," Maduro said.
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