The punches are getting lower in the fight for control of Aeropostal, with an arrest warrant issued against its president and legal proceedings mounting. Aeropostal's president and 51 per cent shareholder, Nelson Ramiz, is currently running the airline from Aruba as he faces arrest on his return to Venezuela to answer fraud charges.
Ramiz faces law suits in both Caracas and New York courts for alleged failure to repay his investment partners' loan of US$20 million used to acquire the formerly bankrupt airline's assets in 1996, and the alleged transfer of assets without his partners' knowledge to set up an operating subsidiary, Aeropostal Alas de Venezuela.
Ramiz has retaliated by suing his partners for defamation and for damages, alleging that he lost a contract due to his partners' failure to pay maintenance reserves on aircraft. Ramiz calls the escalating legal battle for control of the Venezuelan carrier 'a takeover the Latin way.'
Despite the acrimony of the dispute, an out-of-court settlement would still appear possible. 'We're not adverse to a settlement and are open to suggestions,' says David Massie, executive chairman of UKinvestment company IAF, an investment partner.
Whoever wins the battle for control of Aeropostal will gain an attractive prize. In August alone, Aeropostal carried 113,000 passengers, earning revenues of US$6 million and profits of US$2 million, on its network of nine domestic and seven international destinations, says Ramiz. The airline will add two B727s to its fleet of nine DC-9s this November. Talks are underway exploring a codeshare and share swap deal with Brazilian carrier Vasp later this year, says Ramiz.
Lois Jones
Source: Airline Business
