by Donald Wood
Last updated: 11:55 AM ET, Mon June 5, 2017
Just a short time after United Airlines announced it would halt daily service to Venezuela, an airline representative said the South American country's government is withholding billions of dollars from global airlines.
According to Reuters.com, International Air Transport Association (IATA) vice president Peter Cerda said Sunday that the Venezuelan government owes airlines more than $3.8 billion for failure to reimburse companies in hard currency for ticket sales in local currency.
"I still think it will probably get worse before it gets better," Cerda told the media at IATA's general meeting. "The government's main priority is not aviation ... We know what's happening in Venezuela with the uncertainty and violent demonstrations."
"The industry is trying to be sympathetic," Cerda continued. "The airlines don't want to pull out of Venezuela, but we are getting to a point where airlines need to take business decisions."
[READMORE] READ MORE: Two More Airlines Suspend Flights To Venezuela[/READMORE]
Venezuela is currently engulfed in political turmoil and an economic crisis that has resulted in the deaths of at least 65 people since April. United's decision to stop service to the South American nation comes after other major airlines like Lufthansa and Air Canada already pulled out of Venezuela over the last several years.
Other carriers based in the United States, including American Airlines and Delta Air Lines, have asked the Department of Transportation for antitrust immunity following Venezuela's economic collapse.
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