Now that Ernesto Asbun has resolved ownership and pension issues at Lloyd Aéreo Boliviano (LAB), he plans to grow the airline by taking over route rights of grounded Ecuatoriana de Aviacion. A decade ago, Brazil's VASP owned Bolivia's LAB and Ecuatoriana; when Asbun bought LAB from VASP he acquired the $14 million debt that Ecuatoriana owed VASP, a debt now capitalised in exchange for 50.1% of Ecuatoriana's shares.
LAB has leased four Boeing 767s and two 757s with plans to revive dormant Ecuatoriana routes to the USA. LAB still needs operating clearance from authorities in Quito and Washington but intends to wet lease its jets to Ecuatoriana and so avoid the US Category 2 limit on its flights and grow through cross-border links.
Source: Airline Business
