Curacao Government to Discuss Financial Assistance to Local Airline

Coalition leaders in Curacao will discuss with the minister of economic development, Stanley Palm, the minister of aviation, Earl Balborda and the minister of finance, Dr. Jose Jardim, the request made by the local airline Insel Air to the Curacao Airport Holding (CAH) for a loan.

Officials from the ministry of economic development have been working on a proposal on how CAH can assist Insel Air financially. The argument used in this proposal is that companies like Air Berlin are receiving incentives from Curacao, while not transporting as many passengers as Insel Air, which is not receiving these incentives.

Recently there was a proposition in the Council of Ministers to give Insel Air financial assistance through CAH, but the ministers did not make a decision on this matter, instead they left if for the political leaders of the coalition parties to decide. Balborda did not want to comment on this topic ahead of the meeting.

At the end of last year, there was a dispute between Curacao Airport Partners (CAP) and Insel Air about incentives not granted to the local airlines. In this case, the aviation company believes that it deserves these incentives from the airport operator. The Department of Civil Aviation intervened between the two parties to help solve this issue. According to reports, CAP and Insel Air agreed on some of the incentives and the local airline will receive a loan of $2 to $3 million from CAH.

This has become necessary since Insel Air has about $50 million stuck in Venezuela through the country’s foreign exchange administrator CADIVI. Venezuela is not only a problem for Insel Air but for many other international airlines operating to and from that South American country.

Source: Caribbean News Now