Bolivia’s Largest Private Airline Confronts Potential Fleet Repossession

Gustavo Roe

The General Directorate of Civil Aviation of Bolivia has notified the Amaszonas airline about the cancellation of the registration of its four Embraer E190, leased from GY Aviation Lease 1816 Co. Limited. “The formalities to notify the deregistration of these aircraft have been completed, giving Amaszonas ten working days to initiate the necessary actions to justify and prevent the grounding of the aircraft,” stated the director of the Bolivian DGAC, José García. He clarified that if the company obtains other aircraft after this period, they can continue to operate with their AOC (Air Operator Certificate). It is worth mentioning that Amaszonas is going through turbulent economic disputes with the lessor to the point that the latter is demanding the return of the planes. On June 23rd, the DGAC of Bolivia received a notification from the lessor demanding the decommissioning of the four leased aircraft, which are: CP-3135, CP-3142, CP-3145, and CP-3171, all of them leased to Amaszonas S.A. Through the Ministry of Public Works, the Bolivian state indicated on Monday, July 31st, that it will not intervene in the issue, as it “is a conflict between private parties,” commented Minister Édgar Montaño. “We regret that a solution has not been reached, but what is appropriate is to enforce the rights of passengers and users in Bolivia. That’s why I instructed the DGAC and ATT to apply national and international regulations in defense of rights,” he said on the occasion. He also added that the company urgently needs to negotiate its obligations with the lessor to avoid being affected by the cancellation of registrations.
An Amaszonas Embraer E190 in Santa Cruz de la Sierra

Amaszonas Responds: They Will File a Repeal Resource in New York

The General Manager of the company, Dardo Gómez, stated in an interview with El Deber Radio that they will file a repeal resource to nullify the resolution that cancels the registrations within the indicated timeframe, as well as present all documentation and supports for their proper defense. The airline considers the measure unilateral as it involves differences between private parties that should be resolved in the arbitration courts in New York. Regarding the financial status of the Bolivian airline, Amaszonas, Gómez commented that like all airlines, they are recovering after all that the pandemic has entailed, with the aggravation that they had to assume debts and unpaid bills from 10 previous managements. According to the manager, Amaszonas will operate with a “below the wing” scheme, meaning they cover all operational obligations, but on a daily basis. Similarly, he also mentioned that they are considering signing a memorandum of understanding with investors to inject resources and urgently provide cash flow to the airline. Dardo Gómez assured that all operations and air services provided by Amaszonas will continue regularly. Furthermore, he mentioned that the company has transported over 60,000 passengers, both nationally and internationally.

And the Deadlines Run…

On August 4th, the Authority of Regulation and Supervision of Telecommunications and Transport (ATT) will inform whether they lift or maintain the imposed measure regarding the suspension of all advanced air ticket sales on the Viru Viru – Asunción route, after September 25th, 2023. “We urge the airline to maximize its efforts, in order to safeguard all air transport users, as it is our duty to ensure passengers’ rights are fulfilled,” said the executive director of ATT, Néstor Ríos, according to a report from the Bolivian agency ABI.

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