Venezuela's Aeropostal is blaming currency controls for its decision to suspend all three of its South American cross-border routes.
By mid-July it is dropping flights to Lima, Bogotá, and Medellin, suspending services to Havana, and putting its Central American expansion plans on hold. It will only continue operating flights to Miami and the Caribbean.
The airline says it has cut back as it needs to replace its fuel-thirsty Boeing MD-80s, but cannot acquire other aircraft due to the government's currency controls. As an anti-inflation measure, for the past four years Venezuela has restricted how much money local companies can spend outside the country.
The association of Venezuela's airlines has complained to the government that the currency controls limit the ability of its members to buy spares or pay for offshore maintenance.
Source: Airline Business
