Curacao to become second Inter-Caribbean Airline hub

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Curacao to become second Inter-Caribbean Airline hub

Unread post by bimjim » Wed Dec 12, 2018

https://www.thedailyherald.sx/islands/8 ... irline-hub

Curacao to become second Inter-Caribbean Airline hub
12 December 2018

AIRPORT

Curacao is set to become a second hub for Turks and Caicos-based Inter-Caribbean Airline as it assumes operations of Curacao-based InselAir International in the coming weeks. InselAir will continue to exist, but under a new brand.

Inter-Caribbean does not have air connections to the Southern Caribbean and Northern South America. Those connections will be gained with the acquisition of InselAir as of December 18, InselAir President and Executive Chairman Lars de Brabander told The Daily Herald Tuesday.

The integration and alignment of the operating system of Inter-Caribbean and that of InselAir will be the start of Curacao's second hub function of the merged operations.

Inter-Caribbean has three flights daily into St. Maarten and from here together with InselAir its reach can be expanded farther South. InselAir clients can access more destinations to the North all on one ticket.

"We will fill in each other's gaps. That's the beauty of two companies working together and aligning their networks," said De Brabander.
It will continue to be two companies even when InselAir is taken under the wing of Inter-Caribbean. InselAir will be rebranded with a new name, said De Brabander. The final decision on the name will be made public at a later date.

Commenting on the planned name-change, De Brabander said that unfortunately the airline's troubles have made its name "come to have a negative perception for travellers. We are working on our image and this part of it."

As for any more right-sizing of the InselAir with the new venture with Inter-Caribbean, De Brabander said looking ahead and paying attention to forecasts are daily parts of the airline industry. What he could say was that developing Curacao as a second hub for Inter-Caribbean will require more manpower. "Right-sizing doesn't always mean downsizing," he pointed out.

Asked whether he will stay on at the helm of the soon-to-be renamed InselAir, De Brabander said he had been hired by the Curacao government as an airline crisis manager to help shore up the airline. "It was a six-month job and my task part was to seek synergy with a partner for InselAir and to keep the company afloat. My mission will be completed soon and it will be up to Inter-Caribbean going forward," said De Brabander.

InselAir commenced a five-month block-seat and code-share with Corendon and Divi Divi Air on Monday. This partnership will be evaluated as of January 2019 as the Dutch Caribbean airline looks to its future stability and its coming together with Inter-Caribbean.

De Brabander said the Corendon/Divi Divi partnership means InselAir travellers opting for his airline can still purchase tickets at InselAir's office, via www.fly-inselair.com and at travel agencies.

"We are content and happy. We know for sure we have a good deal with Corendon. And, our fares continue to be competitive," he said.

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Curaçao becomes second hub for InterCaribbean Airways

Unread post by bimjim » Wed Dec 12, 2018

http://curacaochronicle.com/aviation/cu ... n-airways/

Curaçao becomes second hub for InterCaribbean Airways
Wed, Dec 12th, 2018

WILLEMSTAD

Curacao will be the second logistics hub of InterCaribbean Airways.

With the takeover of the local airline InselAir, the aviation company from the Turkish and Caicos islands will have access to flights to the southern Caribbean islands and the north of South America. Conversely, it is now easier for the southern islands to gain access to the Windward Islands.

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Re: Curacao to become second Inter-Caribbean Airline hub

Unread post by bimjim » Wed Dec 12, 2018

https://newsroom.aviator.aero/intercari ... -inselair/

InterCaribbean Airways to establish a Curacao hub post takeover of InselAir
12 December 2018

InterCaribbean Airways plans to establish a hub in Curaçao once its completes the acquisition of struggling neighbor airline InselAir on 18 December 2018. Additionally, InselAir will be rebranded as part of the process and will continue to operate as a separate airline.

With the acquisition, InterCaribbean will also gain access to the Southern Caribbean and Northern South America as the two carriers align their networks.

Management of InselAir may also change, as current president and executive chairman Lars de Brabander is nearing the end of his six-month term with the government, who hired him to find a partner carrier. Any such extension would be up to InterCaribbean.

In terms of the InselAir's current codeshare agreement with Corendon Dutch Airlines and Divi Divi Air, it will be re-evaluated in January 2019 once the the deal with InterCaribbean Airways is completed.

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Re: Curacao to become second Inter-Caribbean Airline hub

Unread post by bimjim » Wed Dec 19, 2018

https://www.linkedin.com/pulse/inter-ca ... ter-tomas/

Tomas's Comment:

So even after all the scandals and BS that has been going on since 2016 when the airline hit the wall, it wanted and needed A319's and an investor, which Global Aviation Partners of Singapore were hired, they failed miserably on both counts.

In late 2016, Insel Air with around 16 x MD80's, F70's and F50's began seeing effects of the growing financial issues, it had a great network, but everything was falling apart.

They always blame dit on non-payment from Venezuela, reportedly $US 96 million, but why would anyone build that kind of debt with a bankrupt state? "stinks", (Aruba based Tiara Air used the same BS 'excuse' when it failed on November 28, 2016, claiming $26M in fact it was around $3M) which resulted in most of its Curaçao registered (PJ) aircraft being grounded due to lack of maintenance.

The airline began leasing the 4 MD-80's and 3 Fokker 70 aircraft from its sister company Insel Air Aruba. In January 2017, after several incidents involving loss of cabin pressure, mostly involving the MD-80 aircraft, as well as the pilots refusing to take off from Sint Maarten, lead to the grounding of all of the Aruban registered (P4) aircraft that were leased to Insel Air from Insel Air Aruba by the Curaçao Civil Aviation Authority and Department of Civil Aviation in Aruba, for inspect

In September of 2016, the financial situation of aviation company InselAir was very fragile, reason why they approached the government for financial help. The company had no cash flow and they asked for an advanced payment of the airlift development support they receive yearly from the Curacao Tourism Development Foundation.

According to InselAir, they had 96 million dollar of sold tickets in Venezuela, but it was not easy to get the money out of Venezuela on a short term. So it’s was very difficult for InselAir to bridge the cashflow problem.

InselAir decreased its flights to Venezuela from 32% of capacity to 5%, so they have more possibilities and capacity to execute other flights to new destination. Since 2015 InselAir was not paying taxes and social premiums.

InselAir did not have controlled annual returns. They had just an accountant review of the yearbook?

So information about InselAir was very limited. But it was clear that exemption of tax and social premiums till July 2017 will be around 30 million dollar. It was also clear that actual return of InselAir was not sufficient to bridge the cash flow deficit of 15 million dollars.

To continue the operation, InselAir needed cashflow urgently. For this reason a team of professionals made a brief analysis of InselAir and they gave some recommendation of steps that have to be taken.

The official figures of InselAir administration was needed, to get a overall view of the company. In the recommendations, they indicated if the government invests in InselAir, they must get a majority of representation in the commissioners. Also a crisis manager was needed. The crisis manager should look for new routes, planning of the fleet and also purchasing process of the company.

Although the report didn’t gave a positive view of the company’s financial situation, the government decided to give a loan of 33 million guilders to InselAir.

With the investment of 33 million guilders, InselAir was supposed to bridge the cash flow deficit they had. The government with the injection of 33 million guilders ($18.1 million) into InselAir now has 51% of InselAir.

But according to the updated information on InselAir, the company has an amount of 125 million dollars of debts, which means that government bought 51% of the 125 million debts of InselAir, why?

The sale of Insel Air has gone badly, nothing to sell, no AOC since there are no aircraft, Curacao is a FAA Category 2 airport not up to safety standards and so desperate they picked a newly formed LLC shell company in Florida this summer, One Laser Group to be its strategic partner, yet no money, no aviation history, no nothing, it was a scam from bottom to top or top to bottom, but a scam on the good people of Curacao.

Now they are selling nothing, but the name, which has to go, its no longer a favourable brand.

The debt is being reduced, but still $6.1 million in investment and say a few million in debt given a few pennies to the dollar, why buy it?

Inter-Caribbean has 2 ERJ145's sitting in the Turks & Caicos, waiting since summer for pilots and Dominican Republic AOC and building up its Tortola hub in the BVI's.

The airline had done well with 8 x EMB-120, 2 x DHC-6-300 and soon 2 x ERJ-145, now ready to roll the dice on its future in the airline graveyard of Curacao?

This is acquisition will be a disaster, and hurt the airline, its focus is now on Curacao and plans for 2 or x E190's (from Conviasa of Venezuela? a deal with the devil President Maduro?) will put it in the big league of Caribbean airlines, but may break it as well.

When a fish stinks, don't touch it!

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