The Aruban airline, Tiara Air recently filed for an automatic stay which will prevent creditors and collectors from trying to collect debts from the ailing company.
Tiara Air N.V., operating as Tiara Air Aruba, is an airline headquartered and based on the grounds of Aruba,in the Dutch Caribbean, which began operations in 2006. The airline currently operates scheduled flights to Bonaire, Colombia, Curacao, the United States and Venezuela. The airline operates a fleet consisting of the Shorts 360 and Boeing 737 aircraft for passenger operations, with a Learjet 35 for ambulance and private operations.
The airline has been camping with financial trouble for a while now. The government headed by Prime Minister Mike Eman has recently approved a bridge loan from a special emergency fund to keep the airline operating while waiting for the Venezuelan Commission for the Administration of Currency Exchange (CADIVI). CADIVI is one of the main causes of financial problems for various airlines in the Caribbean region, including the Curacao airline Insel Air. According to CADIVI reports, Venezuela owes Tiara Air about 40 million dollars.
The automatic stay will give the company the required space to adjust its operations and to reduce its flights to the Venezuelan country. The airline announced that it will increase its operations to Curacao, Bonaire and Colombia. Currently the aviation company is operating to Curacao, Bonaire, Caracas, Maracaibo and Las Piedras in Venezuela, Fort Lauderdale and Riochacha in Colombia.
