Running an International Airport: Santa Cruz Style

The management at the Viru Viru international airport in Santa Cruz has evidently taken up an odd way to greet arriving airlines, a practice that came to light here earlier this week. In a move called "bajo ala" or "under the wing", managers at the airport began telling pilots that if they wanted clearance to takeoff from the airport they needed to make a payment, in cash, of somewhere between $1,000 to $2,000. Some portion of these funds, according to Bolivian news reports, went into a personal account of one of the officials.

The demand for these cash payments led three airlines this week – American, TAM, and GOL – to temporarily suspend flights altogether, leaving hundreds of passengers stranded, from Bolivia to the U.S.

Now this is serious business (as I'll get to in a minute) but first, I really just need to take a moment to imagine the conversation at the Santa Cruz airport:

American Airlines: This is flight 922 requesting permission from the tower to land.

Santa Cruz Tower: Okay 922, permission granted, but my boss wants you to see him on the runway for a minute after you land.

American Airlines: Roger that? (Hey Joe, what the %#*& do you think that's about?)

On the Runway:

American Airlines pilot: You asked to see me?

Santa Cruz airport official: Yes, we have sort of a new rule here.

American Airlines pilot: And that would be…

Santa Cruz airport official: Well, Evo isn't sending us the money we need and, you know, we have a lot of costs. Anyway, to takeoff I'll need a cash payment of $1,500.

American Airlines pilot: You're joking, right?

Santa Cruz airport official: Funny, the guy from TAM said the same thing. No, you actually do need to pay us $1,500.

American Airlines pilot: You're crazy, we don't make payments like that. And we don't even have $1,500 in cash on us.

Santa Cruz airport official: A check?

American Airlines pilot: No, we don't have checks either.

Santa Cruz airport official: We can't take credit cards. Too easy to trace. Pretzels?

American Airlines pilot: Look buddy, we don't have cash, we don’t have a check, and since 9/11 we don’t even have pretzels.

Santa Cruz airport official: Duty free?

Okay, that's how I am guessing that it went. But it is just a guess.

In any event, American Airlines didn't like the new arrangements well at all and flew flight #922 back to Miami empty earlier this week and told Bolivian air officials that they weren't coming back until they dealt with the scam.

According to Los Tiempos, Santa Cruz airport officials defended the special payment demands to the airlines, claiming that the money was needed because the airports regular revenues are administered by the national government and had been frozen as part of a look into the airport's debt and possible fraud. Among other things, 20% of the budget to manage the airport, about $250,000, was being used to pay honoraria to members of an Administrative Council, the function of which remained unclear.

On Tuesday, the Santa Cruz Civic Committee announced that it has negotiated a temporary truce with the airlines (no mention of pretzels included) and flights were set to resume.

Then in the pre-dawn hours Thursday, the Morales administration flew in a force of at least 300 soldiers, commanded by the head of the nation's Air Force. The soldiers led a surprise takeover of the airport, including replacing those in charge. The Morales administration, pointing out the suspension of flights, described the move as necessary to protect the free flow of public air travel.

Morales critics will properly note the irony of that declaration given the President's regular use of road blockades as an instrument of protest during his pre-presidential days. Accountants however, may stand in awe of what is, to be honest, a pretty dramatic way to start a fiscal audit.

The pre-dawn drop of soldiers from the sky did not go down well with Santa Cruz civic leaders. The Governor of the Department of Santa Cruz, Ruben Costas, called on "20,000 to 50,000" Crucenos to march on the airport to force an end to the national government's takeover. And sounding eerily like a Bolivian Al Haig (youngsters, you will need to look that one up), he added that "they should await orders that are given by the only commander the people have, me."

Costas also decided to add a little Venezuelan flavor to the mix of his hot public rhetoric, declaring President Hugo Chavez as a persona-non-grata in the department. To my knowledge, President Chavez was not at the Santa Cruz airport (nor were any soldiers from Venezuela, Cuba, Iran, North Korea, or the Taliban). But there is a guy who serves coffee at the Brazil Café that looks a little like Chavez. It might have been just an honest mistake by the Santa Cruz Governor, or he may have just needed something more compelling to motivate people than banners reading, "Oye, American Airlines, donde esta mi plata, pues?"

Earlier today the Morales Administration announced that is was removing the troops from the airport in order to avoid provoking a confrontation. That was probably a wise move, especially since it had already achieved its objective of taking control away from the cash-charging managers. The government will continue to carry out an audit of the airport's finances.

I asked the friendly agent at our local American Airlines office this morning if they were flying as normal. "Yes," he told me. "But if you are flying from Santa Cruz, we suggest arriving at the airport four hours early." That is pretty close to the hour that the Air Force arrived yesterday, but I don't think that's why.

In any event, if you are flying this way and shortly before landing the stewardesses start walking the aisles and passing the hat, it may not actually be a collection for needy children around the world. Just in case, I'd ask.

Photo: Stranded passengers at the Santa Cruz airport this week, from Los Tiempos.