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Bolivian Airline Criticized for Excessive Spending on Low-Demand Havana Route

Sunday, August 10, 2025 by Felix Ortiz

Bolivia's state-owned airline, Boliviana de Aviación (BoA), has come under fire for reportedly spending over $2.5 million on flights to Cuba and Venezuela that attracted minimal passenger interest. This accusation was brought to light on Tuesday by Janira Román, a representative from the Community Citizen (CC) party.

During a press briefing, Román expressed concerns that some flights were nearly empty, carrying as few as 17 passengers despite the aircraft having a capacity of 168 seats, as reported by local media in the Andean nation. "It's a massive expenditure for an average of just 60 passengers per flight," Román stated, demanding a written explanation from the Ministry of Public Works regarding the financial viability of these operations.

The complaint highlighted that between 2023 and 2025, BoA allocated $2,531,320 to sustain these unprofitable routes, with the Cuban route alone costing $2.1 million, primarily due to handling services for passengers and cargo. The Caracas, Venezuela route, also mentioned by Román, incurred a cost of $427,000, including ramp services and legal fees.

These figures are documented in the State Procurement System (SICOES). Román warned that while funds were being directed to these international destinations, local airport infrastructure remained neglected.

Previous Warnings of Financial Losses

In February 2025, opposition senator Centa Rek disclosed a Ministry of Public Works report that revealed financial losses on the Santa Cruz to Havana route during its first nine months of operation. According to this report, 36 flights had an average passenger count of 60 outbound and 74 inbound, well below the Boeing 737-800's capacity.

The operational cost for this period was $12.7 million, necessitating a ticket price of over $2,600 per seat to break even, against actual fares ranging from $775 to $1,010. Rek criticized the route's initiation as lacking "prior study" and serving a "more ideological and political than economic" purpose, pointing to the Movement for Socialism (MAS) government's close ties with the Cuban and Venezuelan regimes.

BoA launched the Havana flights in October 2023 as part of President Luis Arce's "regional integration" agenda. However, the passenger numbers never reached levels that justified the costs, leading to the route's suspension in July 2024 after just nine months.

BoA has faced years of financial losses and allegations of mismanagement. While the government defends its foreign policy, the opposition is calling for audits and accountability regarding the use of public funds on routes that, according to available data, failed to generate sufficient demand.

Insights on BoA's Financial Challenges

Why is BoA facing criticism for its flight operations?

BoA is criticized for spending over $2.5 million on low-demand flights to Cuba and Venezuela, with reports of flights operating nearly empty, which raises concerns about financial mismanagement and waste of public resources.

What were the financial implications of the Santa Cruz to Havana route?

The route incurred $12.7 million in operational costs, with low passenger turnout making it unprofitable. Ticket prices needed to exceed $2,600 to cover costs, while actual fares were much lower.

What actions are being demanded by the opposition?

The opposition is demanding audits and accountability for the allocation of public funds on unprofitable routes, questioning the government's rationale behind these decisions.

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