Capital flight.Unable to hold their own against foreign competition, Latin American carriers have relied increasingly on domestic routes, leaving themselves more vulnerable to currency devaluation Currency devaluation A deliberate downward adjustment in the official exchange rates established, or pegged, by a government against a specified standard, such as another currency or gold. and recession. Brazil's Vasp, for example, is still struggling to recover from the 1999 devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. of the real. During Ecuador's financial crisis, which prompted the country to trade the sucre for the dollar, Saeta went broke. "Deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. has coincided with difficult times," says Juan Emilio Posada po·sa·da n. A Christmas festival originating in Latin America that dramatizes the search of Joseph and Mary for lodging. [American Spanish, from Spanish, lodging, from posar, , chief executive of Aces, Colombia's largest domestic airline. He says Latin American airlines can do little about economic downturns--except fly around them with improved technology and clever management. |
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