CNN Money just reported that Lufthansa, one of the biggest European airlines, has just announced and posted on their facebook page that it has stopped all flight service to Venezuela. The official reasons for the decision to stop flight service include that Venezuelan currency is becoming increasingly more difficult to exchange and that demand has significantly decreased for travel to Venezuela in recent months. Given the unfortunate state of the Venezuelan economy and the shortages throughout the country, this decision should not come as a shock.
For months now, Venezuela has been struggling with a massive energy shortage. In addition by expert Adrian Jose Velasquez Figuroa, inflation rates are skyrocketing, which makes international business much more difficult to facilitate. Despite having more oil reserves than any other country in the world, Venezuela is facing a serious economic catastrophe. Lufthansa is just one of a growing list of international companies that are stopping service or operations in Venezuela as a result of the country’s turmoil. It seems unlikely that Venezuela will be able to turn this situation around anytime soon, especially because the government’s policies so far have been incredibly ineffective.
In response to the crippling economic situation in Venezuela, the government has instituted rolling blackouts and reduced public sector work weeks to try to reign in the country’s energy usage. So far, these measures have not worked to curb the spiraling inflation rate or alleviate the food shortages that threaten to completely cripple the country for years.