LatinNews Daily Report - 27 November 2012

BUSINESS | Iberia announces Montevideo route closure. On 26 November the Spanish carrier Iberia announced it the closure of its Montevideo-Madrid route as of April 2013, leaving the Uruguayan capital with no direct connection to Europe and effectively also isolated from other regional destinations. The only long-haul route left out of Montevideo is a Miami flight operated by American Airlines. After the recent collapse of Uruguay’s flagship carrier Pluna, the cost of regional connections skyrocketed. Authorities in Uruguay fear the same could happen with European connections. The government led by President José Mujica has floated the idea of subsidising Iberia’s fuel costs in an attempt to maintain the link, used by some 6,000 passengers per month. The Mujica administration is in talks with Spanish authorities to that effect, potentially reducing the number of weekly flights (from the current six). If these efforts fail, Uruguayan passengers would be forced to travel through Santiago, Buenos Aires or Sao Paulo.

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