The sale of Venezuela's state-owned airline Aeropostal, bankrupt and grounded since October 1994, could take place by late June. Though the carrier's assets are limited and valued at $20 million, the asking price is double that.
The government claims that it has received five bids, but analysts regard only two of them as serious: those by Colombian carrier Avianca and Venezuelan domestic airline Aserca. Aeropostal's tangible assets are valued by consultants at $15-$20 million and include nine DC-9s.
The decision to try to sell Aeropostal again - an attempt was made in July 1994, but bids of $30-$35 million were rejected as too low - appears to have been influenced by the recent sale of Ecuatoriana to Brazil's Vasp, which took a 50.1 per cent stake. Like Aeropostal, Ecuatoriana was not operating at sale time and had an asset value of $15 million, about half of its sale price. 'Most privatisations in Latin America have sold for much more than the value of tangible assets,' says Don Garvett of consultant SH&E.
But prospective buyers face serious external problems. The Venezuelan economy is in deep recession, and an impending reform plan will slow economic activity in the near future. Also, the US Federal Aviation Administration has already categorised Venezuela's air safety oversight programme as inadequate, and is threatening to lower its ratings even further, effectively banning Venezuelan airlines from serving the US.
But Aeropostal's name and route rights are valuable. It is widely recognised in Venezuela and the Caribbean, and held a 40 per cent home market share before bankruptcy.
Barry Lynn
Source: Airline Business
