Conviasa (V0, Caracas Simón Bolivar) has reportedly settled an outstanding debt claim with Italian operator, Blue Panorama Airlines (Rome Fiumicino), with the latter having now resumed services from Caracas Simón Bolivar to Buenos Aires Ministro Pistarini and Madrid Barajas. A B767-300(ER), EI-FCV (msn 26260), was recently seen in service for the Venezuelan national carrier.

Despite an announcement earlier this month by the Venezuelan Minister of Water and Air Transport, Luis Gustavo Graterol Caraballo, to the effect that USD186.93million would be disbursed to Conviasa and 14 other domestic carriers, it has since emerged that a contract with Embraer (EMB, São José dos Campos U.E. Stumpf International) concerning the purchase of twenty E190s is also in jeopardy.

Sources in Caracas inform ch-aviation that the Brazilian manufacturer has held off on delivering the last seven remaining EMB-190s to Conviasa due to non-payment of monthly instalments for the previous thirteen aircraft already delivered. Conviasa has been given 60 days to settle its account or face legal action, the source said.

In addition, the aircraft's after-sales MRO provider terminated its contract with the Venezuelans two months ago also citing non-payment of debt.

So dire has Venezuela's foreign currency crisis become that the Director General of the International Air Transport Association (IATA), Tony Tyler, has now called for direct talks with Nicholas Maduro's socialist government to help find a solution to a problem that has also affected 24 foreign carriers.

"While the government has permitted the repatriation of USD424million shared among a number of airlines, continuing sales in the country have seen the total amount owed grow to a staggering USD4.1billion," IATA said. "Airlines can no longer afford the risk of not being paid when providing services to Venezuela. International capacity to and from Venezuela is down 49% from peak service levels offered last year and 36% lower year on year."

In its second quarter earnings announcement, American Airlines (AA, Dallas/Fort Worth) - one of the most affect carriers - stated that as of June 30, funds currently trapped in the troubled South American country now totalled the equivalent of USD791million in Venezuelan bolivars (VED) up from USD750 million on March 31.