Aruba’s Tiara Air in talks with Venezuelan investors

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Aruba’s Tiara Air in talks with Venezuelan investors

Unread post by bimjim » Sat May 31, 2014

http://curacaochronicle.com/aviation/ar ... investors/

Aruba’s Tiara Air in talks with Venezuelan investors
Mon, May 12th, 2014

ORANJESTAD

Tiara Air is in talks with an unnamed Venezuelan investor. This is according to airline director and owner, Alejandro Muyale. Speaking at a news conference on the Caribbean island recently, Muyale also confirmed reports that he has submitted a request to the Aruban Labor court to lay off 58 employees or two-thirds of its entire workforce.

Muyale said the redundancy drive, though tough, was necessary as the court required him to demonstrate that adequate cost-cutting measures were being put in place. In return for a suspension of payments to creditors, the judge and the receiver of Tiara Air, evaluate the airline on a monthly basis to see whether or not progress has been made and whether bankruptcy should be declared.

The CEO did note, however, that should talks with the Venezuelans succeed, a proposed release of USD21.8million in funds would avert the need for workforce cuts. The Aruban carrier has suffered immense financial distress as a result of the ongoing Venezuelan foreign-currency exchange crisis. Muyale noted that while some carriers had begun to receive some funds from the Venezuelan government, Tiara had not.

Meanwhile, Tiara Air has entered into a joint-venture agreement with Venezuela’s Albatros Airlines in which the Arubans will operate their 4x daily Aruba to Las Piedras, Venezuela flights using an Albatros Cessna (single turboprop) Grand Caravan 208B.

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