Gol suspends Venezuela service on currency dispute

Brazilian airline Gol has suspended operations to Venezuela's capital Caracas until it can settle a dispute over the transfer of money out of the country. The money is being held in Venezuela under the country's strict currency controls, a system that has led other airlines to take write-downs on Venezuelan operations or suspend ticket sales and service to the country. Airlines have US$3.9b of resources trapped in Venezuela, according to IATA. The government requires all tickets to be sold in local currency but makes it difficult for the airlines to convert that local revenue into dollars. The Venezuelan bolivar though has been shrinking, reducing the foreign currency value of the local ticket sales. "Gol temporarily suspended its operations in Caracas, Venezuela until the issue of repatriation of company resources in the country is resolved," a statement said. "Clients affected are being re-booked on other airlines and receiving all necessary assistance."<br/>