Visiting Venezuela is not something a lot of people have planned. A significant number of persons, however, would like to explore options of leaving. Now as reported by Dateas, both leaving and arriving the country have become a bit harder. The German airline giant, Lufthansa, is no longer flying into the country. The economic catastrophe in Venezuela has a consistent ripple effect. This is yet another one. Nothing good can come out of the airline company choosing to drastically curtail the business it does in the country.
Those in charge of Lufthansa like Ms. Norka Luque have noted that currency controls imposed by the Venezuelan government have led to the inability to convert the funds to dollars. Lufthansa simply cannot tolerate a situation of this nature. The company has to be able to turn a profit and access the funds it procures. If the currency in Venezuela declines in value and Lufthansa is stuck holding onto these funds, the company automatically sees a decrease in revenue and assets. Converting to dollars would be much safer for the airline company. The government won’t let them do this. So, Lufthansa has to look out for its own interests and cease doing business (in part) in Venezuela.
This is not the only incident of government policy being blamed for the country’s economic troubles. Poor government policy decisions are at the root of many economic disasters in Venezuela. Lufthansa is the most recent example. More are sure to follow.