Be able to earn Continental OnePass frequent flyer miles aboard flights of either of the Latin carriers.
On October 28, the Air Aruba Reprivatization Task Force announces the formal and final closing of the participation and restructuring agreement between Air Aruba, the Legal Entity Aruba, and ASERCA Group. ASERCA Group is now officially the largest shareholder in Air Aruba with a 70% stake. Within days, the financial restructuring of the airline and the work of the task force are completed and the airline is able to continue operating on its own financial strength.
ASERCA Group leases a pair of Boeing MD-90-30s from Hwa-Hsia Leasing, Ltd. of Taiwan on November 19. The one retained by ASERCA for use in Latin America is the first new aircraft delivered to a Venezuelan airline in more than a decade. The other is subleased to Air Aruba, N. V., which will employ it on its North American routes.
A third MD-90-30, which is also slated for Air Aruba, N. V. is delivered in 1999. In December, Venezuela is hit by floods and landslides that kill thousands and close the Caracas Airport for weeks. The airline loses significant income.
In terrible fiscal shape, AVENSA (Aerovias Venezolanas, S. A.) is
Pushed by the government in early 2000 toward a joint venture-just short of a merger-with ASERCA. On April 6, the two carriers sign a letter of merger intent.
In late spring, AVENSA is approached by LAV Venezuelan Airlines, S. A. (Aeropostal) with a buyout offer. Under the proposal, AVENSA would pay $20 million for 80% majority control. In June, the AVENSA board rejects the Aeropostal offer, preferring the union with ASERCA instead. Even though the two plan a joint service from Caracas to Madrid with ASERCA aircraft in July, the matter of paying off $53 million in debts, however, remains.
On October 16, it is announced that service to Europe will resume on November 24.
Plans for a merger with AVENSA are dropped on November 3.
World History
