Aero Continente Chile was forced to suspend operations last week after the country's DGAC civil aviation authority revoked its operating and technical permits on safety and administrative grounds. The Chilean government's decision took effect as the carrier's flights from Santiago to Buenos Aires and Miami departed on 10 June.
The airline, which had a fleet of five Boeing 737-200s and one 767-200ER, lost its licences after the DGAC charged the carrier with "non-compliance of existing airline administration, aircraft operation, aircrew training standards and airframe maintenance regulations".
The carrier, a subsidiary of Peruvian airline Aero Continente, has been dogged by allegations of predatory air fare pricing and laundering drug money, the latter leading to Aero Continente Chile's suspension of operations last July. After capturing about 16% of Chile's domestic and international air transport market, that share had dwindled to 5% when it resumed operations late last year.
According to Aero Continente chief executive Lupe Zevallos Gonzalez, Chile's DGAC has "repeatedly halted the airline's activities arbitrarily and illegally". Zevallos has requested that the Peruvian government take steps to apply similar measures against LanPeru, a subsidiary of LanChile.
Source: Flight International
