The Bolivian government has accused the state-owned airline, Boliviana de Aviación (BoA), of incurring economic losses amounting to 18.4 million bolivianos due to the operation of a largely unprofitable route between Santa Cruz and Havana. This route, introduced in October 2023 during Luis Arce's presidency, lacked a proper feasibility study, leading to current legal actions against six former officials.
Yamil García, the Deputy Minister of Transparency, disclosed that the route was established based on ideological motives, disregarding BoA's board's advice to conduct a thorough feasibility analysis first, as reported by La Voz de Tarija.
Political Decisions Overrule Technical Advice
An internal document that should have provided technical justification was replaced with political reasoning. At that time, the airline's manager issued a report indicating that the "operation's commencement is planned according to the presidential commitment" by Arce, despite recommendations to prioritize other routes like Córdoba or Bogotá due to higher viability.
Staggering Losses from Underutilized Flights
The occupation rates paint a clear picture of the wastefulness. A Boeing 737-800, capable of carrying 168 passengers, flew on multiple occasions with extremely low occupancy: only 17 passengers on November 30, 2023, 22 on February 22, 2024, and merely 11 on September 19, 2024, leaving over 150 seats empty each time. Moreover, the airline had previously accumulated over $2.5 million in losses on routes to Cuba and Venezuela.
Financial Misconduct and Investigations
Among the irregularities under investigation is BoA's practice of transporting cash to Havana, which is part of the penal inquiry involving the six former officials, according to RedUno. The route was eventually suspended in July 2024 due to the mounting losses.
BoA has long been plagued by financial losses and allegations of poor management. While the administration defends its foreign policy choices, opposition forces are calling for audits and accountability regarding the use of public funds on routes that evidently lacked sufficient demand.
FAQs on BoA's Controversial Cuba Route
Why did BoA open the Santa Cruz-Havana route?
The route was opened for ideological reasons, as per government motives, without a technical feasibility study as advised by BoA’s board.
How significant were the losses from this route?
The airline incurred losses of 18.4 million bolivianos, with occupancy rates showing planes flying almost empty on multiple occasions.
What actions are being taken against former BoA officials?
Six ex-officials are facing criminal charges as part of an investigation into the financial misconduct related to the route.