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LET OUR FLIGHTS LAND IN THE USA

  • Writer: #Stuckinperu, LATAM Shame
    #Stuckinperu, LATAM Shame
  • May 12, 2020
  • 14 min read

BACKGROUND:

On March 16th, Peru shut down its borders and international travelers had less than 24 hours to leave the country. Commercial flights were grounded, and tens of thousands of foreign nationals, including more than 20,000 Americans, were stranded within Peru. To complicate matters, Peru instituted a strict quarantine to protect its own citizens, enforced by military police, and prohibited all ground transport for everyone, except with special written permission from each person's respective government. It became impossible to get a taxi to the airport, let alone catch a flight. This complete lockdown remains in place today. As a result, thousands of Americans are still stranded throughout the vast / topographically challenging country of Peru--with little to no direct communication from their US Embassy or the State Department. Worse yet, their only government-sponsored way out is to pay $2,050 for a one-way ticket from Lima to Miami (normally a $200 flight) and most at this point are literally unable to afford to come home to the US. It's a humanitarian crisis created by the federal government.

FOUR KEY CONCLUSIONS:

(1) EASTERN AIRLINES. The federal government (current administration) is preferentially awarding contracts to enable Eastern Airlines to profit off of the desperation of stranded Americans. Eastern quickly--and inexplicably--became the primary/sole airline authorized to provide repatriation flights from Peru and other countries in Latin America. WAR obtained (and provided to the State Department) more than a dozen competitive bids from at least 4 other airlines, priced between $300-$500 per seat, but Eastern remains the only state-sponsored airline. Coincidentally, Eastern is 100% owned by a wealthy Republican donor.

(2) REPATRIATION LOANS. The federal government itself is profiting, through a program executed by the US State Department, in the form of illegal promissory notes and predatory "repatriation loans" that are due within 30 days. Failure to pay in full within 30 days results in the accrual of interest charges. Every American who takes this loan has their passport stamped and invalidated such that they may not fly out of the country until the debt is paid off in full. On the surface it seems the government is providing its citizens with financial assistance, but coupled with the excessive cost of the Eastern flights, this practice is in fact unjustifiable and abusive. They are enabling price gouging, in spite of their mandate to protect against it. For perspective, a family of 4 was heavily pressured to accept a loan for $8,200 to be repatriated from Lima to Miami.

(3) HUMANITARIAN CRISIS. Thousands of Americans have been stranded in Peru for 7-8 weeks, effectively prohibited by their own government from returning home to the US. Most have earned no income during this period abroad. Hundreds have exhausted their savings, and have run out of money for food, water and survival. Many stranded Americans are families with young children, health care workers, veterans, study-abroad students, and elderly or medically-frail patients who ran out of essential medications weeks ago. Some have died awaiting a repatriation flight. Every single day that passes, their situation worsens and they risk exposure to COVID.

(4) SOCIOECONOMIC FILTER. The federal government has created a socioeconomic filter that prohibits certain groups in certain countries from re-entering the US. Whether through explicit policy or implicit practice, this $2,050 filter seems designed to target some countries (developing nations) and some demographics (permanent residents, poor Americans) within each country. This appears to be the secondary aim of the scheme: to prohibit lawful permanent residents (LPRs)--and American citizens who are related/traveling with them--from returning home, indefinitely or perhaps permanently.

SUPPORTING DATA:

(1) EASTERN AIRLINES

Eastern Airlines is currently the only "Embassy approved" airline in Peru.

The flight permits of other commercial airlines landing in the US were suddenly rescinded or revoked, during this crisis.

Current airfare for stranded Americans is $2,049.05 for a one-way ticket (Lima-Miami) with Eastern Airlines. This does not include any connecting flights to get each American to their final destination.

Eastern claims the high cost is due to having to organize flights in less than 48 hours, paying high airport fees, security, luggage handlers, caterers, maintenance, etc (post on social media). Meanwhile in Peru, Eastern flights are being announced by the Embassy 2 weeks in advance.

Easter Airlines President and CEO Steve Harfst affirms in a recent interview that the pricing offered is “pretty darn close to normal commercial prices.” This is simply not the case.

Pre-COVID19 round trip airfare for the MIA-LIM-MIA route ranged between $400-$600 on most commercial airlines. One-way should be even less expensive, and in this economy could easily be $100-$200.

Despite the federal government's mandate to protect its citizens from price-gouging during a national or global emergency, the US is creating an artificial monopoly, and enabling Eastern to overcharge Americans by a factor of 4-10 times the true price of these fares.

Warrior Angels Rescue (WAR) obtained quotes from multiple airlines, including Avianca, LATAM, Viva, SKY Airline, for identical flights.

For a direct comparison, in our efforts to negotiate the lowest prices for each charter option, WAR received in late March/early April several quotes from Eastern Airlines for $202,323 for a 261-seat aircraft for LIM-MIA. This translates to a total cost of $775.18 per passenger, or $387.59 if coordinating with Peru for mutual repatriations.

American citizens who were on a recent flight to Miami with Easter Airlines reported they were "crammed like sardines" by the flight crew, in an old 1980s aircraft, disregarding safety standards and practices. Passengers also reported there were no medical tests prior to boarding, and they received half a soda and a bag of chips during the flight.

By comparison, WAR flights are capped at 80% capacity maximum, to allow for proper spacing; every passenger is given a COVID rapid-test prior to boarding;

Begs the question: Why would any nonprofit organization, offering to assist in the USG's stated goal of repatriation all Americans--at zero cost to passenger or taxpayers--be declined and actually blocked from executing humanitarian flights?

Why? Here are some possibilities.

Eastern Airlines' approximate revenue, based on an approximate 8,900 repatriated Americans, is now close to $18,000,000 by my estimates and calculations.

A strange (and strategic) comeback: Once owned by Donald Trump and rebranded the "Trump Shuttle," Eastern Airlines filed for bankruptcy in 1991 after just 3 years. With a checkered history of bankruptcy and mismanagement, Eastern Air Lines in 2018 was sold to Swift Air, and the trademarks were passed on to Dynamic International Airways, which rebranded as Eastern Airlines, LLC after filing for bankruptcy.

Eastern Airlines became active again in January of 2020, after being defunct for almost 2 decades.

Government contracts were awarded solely to Eastern Airlines, in spite of this track record. The USG called on a relatively-unknown airline that had just re-entered the airspace to do all repatriation flights, instead of contracting with an established American carrier that already had an existing LIM-MIA route, along with all necessary contacts, permits, and working personnel at the Jorge Chavez airport in LIM (such as Spirit Airlines, JetBlue, American Airlines, and Delta among others). Spirit Airlines, for example, is currently doing repatriation charter flights in other countries at much lower prices.

Eastern Airlines' current owner, Kenneth Woolley, who owns 100% of Dynamic International Airways, is a powerful Republican leader and donor. He is the founder and CIO at Extra Space Storage, a partner in the Gaia Real Estate investment firm in New York City, and served as head of mission for the Church of Latter Day Saints, in Moscow.

It is suspected Woolley has financial ties to Trump and/or the Kushner family, and is a significant donor to Trump's reelection campaign.

(2) PROMISSORY NOTES and REPATRIATION LOANS

During the first few weeks of the Peruvian shutdown, the US State Department offered government-sponsored repatriation flights, funded/reimbursed by way of Promissory Notes, due within 30 days. (Standard practice.)

Americans had no idea what dollar amount they were signing up to repay within 30 days, because the Promissory Notes did not have a specified dollar amount. A specific dollar amount is required for a promissory note to be considered valid.

The promissory note is supposed to be a reimbursement of the actual cost of repatriation. Passengers later reported to WAR promissory notes in the amount of $1,000-$1,400, for a flight that actually cost the US government less than $400.

During this same period of time, WAR obtained multiple quotes for identical repatriation flights, and turned those over to the US State Department. Whether the quotes were used by the USSD is unclear to me; but what is clear is that the federal government is charging Americans far more than the actual cost of their repatriation, as is required by law. By an order of magnitude.

WAR obtained quotes from multiple carriers, including Eastern Airlines, during this same time period. The cost-per-seat was a fraction of the inflated amount that the USG was charging its citizens and residents. [I have attached one such quote.]

As soon as a bill was put before Congress to void out the promissory notes for repatriated Americans, the State Department promptly switched to a "pay upfront" strategy.

Americans were then required to pay $2,049 per family member to Eastern Airlines via credit card, and for those who could not afford that outrageous amount, the federal government offered/required them to take a repatriation loan.

We have a family of 8 who were advised to take a $16,392.40 loan, due in 30 days, during the current economic landscape.

With this set-up, Eastern still gets paid in full (with taxpayer monies) and each passenger is on the hook for the full amount, payable within 30 days.

Failure to pay in full within 30 days from the bill date results in the assessment of a $50 fee and accrual of interest charges.

Failure to pay in full within 90 days results in additional penalties, at which point "the debt will be referred to the Department of Treasury for collection," which can "collect the debt via administrative offset of federal payment (e. g tax returns, social security), referral to a private collection agency, referral to credit bureaus, through administrative wage garnishment and/or through other actions permitted by law."

Failure to pay in full (indefinitely) results in heavy restrictions on their passport.

Every American who takes this loan has their passport stamped with a reference to code 22 CFR 51.60(C)(2), which states the passport invalidation until the debt is paid off in full.

This code cites clauses 22 U.S.C. 2671(b)(2)(A) and 22 U.S.C. 2671(b)(2)(B).

Under clause 22 U.S.C. 2671(b)(2)(A), it is stated that for private citizens, no reimbursement shall be paid “that is greater to the amount the person evacuated would have been charged for a reasonable commercial airfare immediately prior to the events rising to the evacuation” (we see this as price gouging protection).

Clause 22 U.S.C. 2671(b)(2)(B) refers to destitute citizens, and does not seem to offer any protection against price gouging.

To be considered as a destitute citizen, however, an official consular office must interview the American citizen and can approve the loan after verifying the citizen has made good faith efforts to obtain funds from private sources. All needs to be documented in the ACS software activity log. Form DS 3072 needs to be filled out.

The commercial airfare for a one-way ticket with route LIM-MIA before the border closure due to COVID-19 ranged between $200-$400 (nowhere near $2,050).

If the federal government is acting by following these Codes of Federal Regulations, why would they offer to fund a $2,050 loan when the reasonable commercial airfare prior to COVID-19 is nowhere near this amount? What is the real purpose behind funding these loans?

Thousands of desperate Americans had been forced (by their current circumstances) to sign the loan and return home, under duress.

In one example of hundreds, a family of 4 was pressured to accept a loan for $8,200 just for the Lima to Miami tickets. Additionally, they had to purchase their own tickets to their final destination from the MIA airport.

In the middle of a global pandemic, the federal government under the current administration is filling their pockets (by taking advantage of the most vulnerable), and is helping Eastern Airlines do the same in the process.

(3) HUMANITARIAN CRISIS

More than a thousand (by some estimates, approximately 10,000 according to a recent article in the Orlando Sentinel) Americans are still stranded in Peru after 8 weeks, with no response or direct communication with their Embassy.

Unable to afford the exorbitant airfare (up to 10x what they should be charge), they are effectively prevented--by their own government--from returning home to the US.

Most have earned no income during this period, many have already lost their jobs as a result, or are on the brink of losing it.

Many have been forced to pay nightly hotel/lodging expenses, in addition to their rent or mortgages back home.

Hundreds have exhausted their savings, and have run out of money for food, water, and survival.

We have accounts of American citizens who have resorted to drinking water from the Amazon river, and accepting shelter and food from humble Peruvian families who are struggling themselves.

Americans, along with Peruvian citizens, have been in strict military-enforced quarantine since March 16th. They have been deprived of their most basic freedoms for nearly 2 months.

Every single day that passes, their situation worsens and they risk potential exposure to COVID-19.

Many stranded Americans are families with young children, healthcare workers, veterans, study-abroad students, and elderly or medically vulnerable patients who ran out of essential medications weeks ago.

Some have died awaiting a repatriation flight.

This blatant violation of human rights has been perpetrated against Americans by their own government, the very entity mandated to protect them in a crisis.

(4) SOCIOECONOMIC FILTER

Whether through explicit policy or implicit practice, this $2,050 filter seems designed to target certain countries and certain demographics within each country.

Any American unable to purchase (or borrow) the full amount of the overpriced airfare is effectively kept out of the United States indefinitely, regardless of their citizenship status.

The secondary aim of the scheme seems to be to prohibit lawful permanent residents (LPRs)--and American citizens who are related/traveling with them--from re-entering their home country, indefinitely or perhaps permanently.

This practice is disproportionately affecting disadvantaged citizens and LPRs within Peru, and is disproportionately harming Americans in/from developing countries, globally.

Racial/ethnic discrimination.

Immigration status discrimination (even for 2nd/3rd generation immigrants).

Further, many American LPRs report that their resident visas have expired during the lockdown, and are therefore unable to re-enter the US even if they can afford the tickets. Many fear that once their visas expire, they will never be allowed to re-apply for resident status again.

Countries where humanitarian crisis is NOT occurring: France, Germany, Canada, Australia, Ireland, United Kingdom.

Countries where federal government HAS created a humanitarian crisis: Peru, Argentina, Ecuador, India, Nepal, Bangladesh, middle eastern countries, Cambodia, Vietnam, Philippines, Caribbean countries, and African countries.

These details and figures reflect the situation in Peru alone; this is also happening in other countries all over the world.

If you've read this far, thank you. I've attached relevant communications with the State Department and others; it will be easiest to make sense of them if you download and read in chronological (filename alphabetical) order.

I cannot tell you how much I appreciate your willingness to help get this information into the right hands.

I am hopeful that we will be able to put an abrupt stop to this practice, and work together to finish repatriating our fellow Americans quickly, efficiently, and affordably.

Stay safe,

Valerie

Valerie Edmondson Bolaños

Founder, Warrior Angels Rescue

www.gofundme.com/help-americans-stuckinperu

www.gofundme.com/evacuatePR

310-923-4265 (text is best!)

**************

https://www.orlandosentinel.com/coronavirus/os-ne-coronavirus-repatriation-flights-americans-in-peru-update-20200510-i42hakwvxvfcvgzslzlwvheusi-story.html

Predatory lending is any lending practice that imposes unfair or abusive loan terms on a borrower. It is also any practice that convinces a borrower to accept unfair terms through deceptive, coercive, exploitative or unscrupulous actions for a loan that a borrower doesn't need, doesn't want or can't afford

https://pe.usembassy.gov/alert-u-s-embassy-lima-peru-march-28-2020-2/

Event:  There are no upfront costs for repatriation flights to the United States.  You will need to reimburse the U.S. government after returning to the United States.   Prior to boarding, you must sign a promissory note (also known as a DS-5528).  Bringing a signed copy of your DS-5528 will speed up your check-in processing at the airport.  If you do not have access to a computer and printer, we will have additional DS-5528 copies available on site.  The amount billed to evacuees is set by U.S. law and based on the cost of a full-fare economy flight to the designated destination(s) that would have been charged immediately prior to the events giving rise to the evacuation.  Click here for more details on costs and the promissory note process.

https://travel.state.gov/content/travel/en/international-travel/emergencies/for-evacuated-citizens.html

How to Repay an Evacuation Loan:

You should make evacuation loan payments to the U.S. Department of State through the Comptroller and Global Financial Services (CGFS) office in Charleston, South Carolina. CGFS is working closely with our other Bureaus, Posts and Embassies to gather all of the necessary documentation in order to process loans and prepare bills.

Please Note: CGFS is experiencing a high volume of emails and/or requests due to the multiple repatriations and evacuations related to the COVID-19 global pandemic. Please allow 6-8 weeks to receive a bill from the CGFS office.

Payment will be due within 30 days from the bill date. In accordance with federal debt collection regulations, if full payment is not received within 30 days from the due date, interest and a $50.00 administrative charge for processing and handling will be assessed.

If this account becomes 90 days past due, then penalties will be assessed on the unpaid balance. Once a debt has been delinquent for 90 days, the debt will be referred to the Department of Treasury for collection and they may collect the debt via administrative offset of federal payment (e.g., tax returns, social security), referral to a private collection agency, referral to credit bureaus, through administrative wage garnishment and/or through other actions permitted by law.

U.S. Passports:

Until your loan is paid in full, you and anyone for whose evacuation loan you are financially responsible may be denied a regular U.S. passport. If you have an urgent need for travel, or have another requirement for a U.S. passport, please contact CGFS regarding payment options and the National Passport Information Center to discuss U.S. passport issuance options that may be available to you.

https://www.law.cornell.edu/cfr/text/22/51.60

§ 51.60 Denial and restriction of passports.

(a) The Department may not issue a passport, except a passport for direct return to the United States, in any case in which the Department determines or is informed by competent authority that:

(1) The applicant is in default on a loan received from the United States under 22 U.S.C. 2671(b)(2)(B) for the repatriation of the applicant and, where applicable, the applicant's spouse, minor child(ren), and/or other immediate family members, from a foreign country (see 22 U.S.C. 2671(d)); or

(2) The applicant has been certified by the Secretary of Health and Human Services as notified by a state agency under 42 U.S.C. 652(k) to be in arrears of child support in an amount determined by statute.

(3) [Reserved]

(4) The applicant is a covered sex offender as defined in 22 U.S.C. 212b(c)(1), unless the passport, no matter the type, contains the conspicuous identifier placed by the Department as required by 22 U.S.C. 212b.

(b) The Department may refuse to issue a passport in any case in which the Department determines or is informed by competent authority that:

(1) The applicant is the subject of an outstanding Federal warrant of arrest for a felony, including a warrant issued under the Federal Fugitive Felon Act (18 U.S.C. 1073); or

(2) The applicant is subject to a criminal court order, condition of probation, or condition of parole, any of which forbids departure from the United States and the violation of which could result in the issuance of a Federal warrant of arrest, including a warrant issued under the Federal Fugitive Felon Act; or

(3) The applicant is subject to a U.S. court order committing him or her to a mental institution; or

(4) The applicant has been legally declared incompetent by a court of competent jurisdiction in the United States; or

(5) The applicant is the subject of a request for extradition or provisional request for extradition which has been presented to the government of a foreign country; or

(6) The applicant is the subject of a subpoena received from the United States pursuant to 28 U.S.C. 1783, in a matter involving Federal prosecution for, or grand jury investigation of, a felony; or

(7) The applicant is a minor and the passport may be denied under 22 CFR 51.28; or

(8) The applicant is subject to an order of restraint or apprehension issued by an appropriate officer of the United States Armed Forces pursuant to chapter 47 of title 10 of the United States Code; or

(9) The applicant is the subject of an outstanding state or local warrant of arrest for a felony; or

(10) The applicant is the subject of a request for extradition or provisional arrest submitted to the United States by a foreign country.

(c) The Department may refuse to issue a passport in any case in which:

(1) The applicant has not repaid a loan received from the United States under 22 U.S.C. 2670(j) for emergency medical attention, dietary supplements, and other emergency assistance, including, if applicable, assistance provided to his or her child(ren), spouse, and/or other immediate family members in a foreign country; or

(2) The applicant has not repaid a loan received from the United States under 22 U.S.C. 2671(b)(2)(B) or 22 U.S.C. 2671(b)(2)(A) for the repatriation or evacuation of the applicant and, if applicable, the applicant's child(ren), spouse, and/or other immediate family members from a foreign country to the United States; or

(3) The applicant has previously been denied a passport under this section or 22 CFR 51.61, or the Department has revoked the applicant's passport or issued a limited passport for direct return to the United States under 22 CFR 51.62, and the applicant has not shown that there has been a change in circumstances since the denial, revocation or issuance of a limited passport that warrants issuance of a passport; or

(4) The Secretary determines that the applicant's activities abroad are causing or are likely to cause serious damage to the national security or the foreign policy of the United States.


 
 
 

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