Paraguay’s ambassador to the United States, Gustavo Leite, has revealed that the government of President Santiago Peña offered American Airlines a $5 million subsidy package, plus additional benefits, to secure a direct Asunción-Miami route. According to a statement from Leite, reported by Ultima Hora, the proposal was made in October 2025 through the National Directorate of Civil Aviation (Dinac) but was rejected by the U.S. carrier.
Leite, who is set to resign his post at the end of July, said he then sought alternatives and brokered a meeting with Brazil’s GOL Airlines in February 2026. GOL agreed to operate the route with four weekly flights, conditional on a monthly support of up to $300,000 for one year, only if the route incurred verifiable losses. President Peña approved the deal during a meeting at Mburuvicha Róga, Leite claimed, as cited by ABC Color and El Nacional. However, Dinac later announced that GOL had postponed the planned June 8 launch, leaving the government in an awkward position.
The revelations sparked sharp criticism from Senator Rafael Filizzola (PDP), who took to social media to question the secrecy of the negotiations. “Peña and Leite secretly negotiating subsidies for airlines as if they were owners of our money!” Filizzola wrote, as reported by ABC Color. He contrasted the $5 million offer with the government’s refusal to allocate $100,000 for neonatal care. Filizzola’s comments underscore a broader political debate over transparency and fiscal priorities.
In response, presidential chief of staff Javier Giménez defended the subsidy approach, calling it a “common practice” globally to boost tourism. He noted that the government had analyzed the GOL proposal and found it “not convenient,” though he could not recall the exact monthly amount. Dinac President Nelson Mendoza, quoted by ABC Color, insisted the agency lacks the budget to disburse such sums without legislative approval, stating, “We cannot negotiate paying a million, a hundred thousand, or a hundred million to anyone.”
Leite, meanwhile, rejected accusations that he had proposed “mortgaging” state assets, emphasizing that he merely secured a more favorable offer than the initial $5 million fixed subsidy. He attributed the route’s failure partly to rising fuel costs and expressed regret that Paraguay still lacks a direct link to the United States, according to Ultima Hora. The controversy comes as Leite prepares to return to the Senate, with his diplomatic mission ending in late July.