Peru's AeroContinente has launched domestic flights within Chile through its new subsidiary, AeroContinente Chile, mirroring LanChile's entry into Peru via LanPeru. Nearby, Bolivia has approved domestic flights by TAM Mercosur on a trial basis. Both moves could be seen as steps towards airline consolidation in Latin America.
AeroContinente Chile has launched Boeing 737-200 flights between Santiago and Conception. By the year-end, it plans to serve seven other cities in Chile. AeroContinente has gained a reputation for its low fares within Peru and its affiliate is bringing the same type of price competition to Chile.
Two Chilean lawmakers have called for an investigation into the start-up based on its ties with AeroContinente, which in turn has allegedly been linked to drug trafficking. The Peruvian carrier has already been cleared twice after separate investigations in Peru and the USA.
AeroContinente Chile has denounced the charges as "part of a commercial war" against it. Meanwhile, La Paz has invited TAM Mercosur to offer flights within Bolivia.
Source: Airline Business
