|06LAPAZ2610||2006-09-27 18:02:00||UNCLASSIFIED//FOR OFFICIAL USE ONLY||Embassy La Paz|
1. (SBU) Summary: Lloyd Aereo Boliviano executives say the
company may be finding its wings, as the firm has boosted its
five-jet fleet with two leased aircraft and is gradually
identifying and settling debts. Despite this good news, the
outlook is far from certain. Rumors of interest from a UK
Virgin Islands-based firm may be little more than smoke and
mirrors. End summary.
2. (SBU) Lloyd Aereo Boliviano executives say the company may
be finding its wings. According to Board President David
Lozano, the firm has boosted its five-jet fleet with two
leased aircraft, once again providing service to domestic and
international destinations. Lozano told Econoff September 23
that executives are working to identify and settle
outstanding debts - estimated at tens of millions of dollars
- and expect to gradually agree payment plans with creditors.
Lloyd General Manager Franklin Taendler spoke optimistically
of the company's future September 27, noting that the firm
has settled debts to its previous insurer and secured
aircraft insurance through a new company.
3. (SBU) Despite this good news, the outlook for the company
remains unclear. Lozano expressed skepticism over airline
employees' early August attempt to transfer shares inherited
from the company's former chief executive, Ernesto Asbun, to
Trans-Atlantic Aviation, Ltd., a UK Virgin Islands firm with
alleged interest in leasing aircraft to Lloyd. According to
Lozano, the firm has been unable to prove its legitimacy,
repeatedly delaying the presentation of registration
documents. Lozano told Econoff he doubted the transaction
would yield concrete results.
4. (SBU) Comment: Lloyd's future may look rosier than it has
in months, but its recovery is far from assured. Rumors of
interested foreign investors surface periodically and quickly
disappear. If past claims of salvation are any indication,
Trans-Atlantic Aviation's interest may be nothing more than
smoke and mirrors. End comment.