Latin American airlines eye Venezuela return as ties thaw, hurdles remain

By Reuters News

By Kylie Madry

MEXICO CITY, Oct 19 (Reuters) - Latin American airlines are showing renewed interest in Venezuela as diplomatic channels reopen and carriers prepare to restore links to Caracas, though industry executives said damaged airport infrastructure and an outdated regulatory framework remain major obstacles to a broader recovery.

Venezuela has strong long-term potential because of its location, but the immediate priority is rebuilding the country's aviation platform after the deadly June earthquakes damaged its main international gateway at Maiquetía, outside Caracas, Peter Cerda, head of the Latin American and Caribbean Air Transport Association (ALTA), said in a press conference on Sunday.

  • "I think Venezuela has significant potential. Strategically and geographically, it is in a perfect location. It is a market with major opportunities," Cerda said

  • ALTA has been in constant dialogue with Venezuelan authorities, Cerda said, but emergency recovery efforts have taken precedence over broader policy discussions

  • Chile's LATAM Airlines LTM.SN said it was encouraged by the reopening process and by improving diplomatic conditions between Santiago and Caracas

  • LATAM Chief Executive Roberto Alvo stopped short of announcing additional routes, but said LATAM would assess future opportunities as conditions improve

  • "LATAM's interest is to continue connecting South America with itself and with the world... As we see that we can develop our connectivity to Venezuela, we will evaluate those opportunities," Alvo said

  • Cerda said the reopening interest was not limited to one carrier or one market, adding that airlines in the US, Europe and the Middle East were also looking again at Venezuela

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