The airline Flybondi reported that due to lack of dollars this may be possible cancel and reschedule some of your flights short term, It would affect around 1,300 passengers per day.
“Due to systematic delays in payment approval for foreign services due to past and current restrictions, the ability of airlines to respect the commitments undertaken towards its passengers and suppliers“, the low-cost airline explained in a statement. “Moreover, new financial instruments will facilitate debt repayment not meeting supplier expectations“, the company added.
Flybondi is owned by investment funds and foreign investors, led by the fund Cartesian, from the United States. As reported by the company in its statement, it currently controls 20% of the cabotage market in Argentina and transports approx 350,000 passengers per month.
The restrictions it is experiencing and due to which some flights may be suspended They could reach 10% of those passengers. “In the short term it involves cancellations and reschedulings that have an impact more than 1,300 passengers per day during a period of high demand such as the summer holidays.
Flybondi’s planes, all of the Boeing B737 brand, are rented to various companies known as lessors, since the method of renting the aircraft is through leasing.
“Due to the sustained situation generated, the company is with part of its fleet affected by non-payment of leasing and other services“, the company added.
The exchange rate of the previous government, tightened in particular starting from March 2022, has accumulated a debt for imports of goods and services that could not be liquidated and which, according to the register enabled by Javier Milei’s government, already exceeds 21,000 million dollars.
The solution offered so far by the Government to businesses is the subscription of a bond, the Bopreal, to cancel that debt with foreign suppliers and the deadlines for accessing the new dollars from the Central Bank have been staggered. According to Flybondi this solution “does not meet the suppliers’ expectations”.
According to the company, “over 70% of airline operating costs They are tied to the dollarwhich covers fundamental aspects such as contracts lease of aircraft, services spare parts and systems airworthinessamong others”.
The company did not specify whether the “current” restrictions mentioned in its statement are due only to the maintenance of foreign exchange restrictions or other types.
The 54% devaluation of the peso ordered by the Milei government also had consequences on the cabotage business, which affects the three airlines operating on this market (Argentine airlines, Flybondi and JetSmart) Have tickets denominated in pesos and most of the cost in dollars. Flybondi he did not mention the devaluation in his statement.
“The airline maintains contact with government authorities and has expressed its concern about this situation, warning of the necessary regularization, trying to ensure that it is not repeated with other suppliers who are essential to the airline’s operation and who are located in a similar situation due to non-payment.” the company added.
Last week, a Flybondi plane suffered minor damage to its tail fell on the runway during a landing at Mar del Plata airport. All passengers and crew were unharmed, but the video of the plane landing with a strong impact, and the images of the plane with the aftermath, were widely circulated on social networks.
The episode was reported by the Transportation Safety Board, which raised the alarm through social networks: “The accident with the Boeing 737-8Q8 LV-KJE aircraft occurred at the “Astor Piazzolla” international airport in Mar del Plata.
Source: Clarin
