Tiara Air (Aruba) (Aruba) is in talks with an unnamed Venezuelan investor airline director and owner, Alejandro Muyale, has disclosed. Speaking at a news conference on the Caribbean island last week, Muyale also confirmed reports that he has submitted a request to the Aruban Labour 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 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 (GAL, Maracay Mariscal Sucre) in which the Arubans will operate their 4x daily Aruba to Las Piedras, Venezuela flights using an Albatros Cessna (single turboprop) Grand Caravan 208B.
