Grupo TACA and LanChile are facing off in a power struggle between their Peruvian units, TACA Peru and LanPeru. At issue are the 12 international routes of defunct AeroPeru, and the ability of both carriers to exploit the geographic advantage of Lima as the hub for a network of South American routes.
Last year Lima awarded AeroPeru's routes to TACA Peru, but only on a provisional basis. That ends in June, and LanPeru sees this as its chance to take some or all of those routes. It does not question TACA Peru's ability, but points to its own improvements, particularly since resolving the shareholder conflict that temporarily grounded it several months ago.
TACA Peru responds by pointing out that Lima officials found last year that it was the only Peruvian carrier capable of operating the routes, that it has provided stable service on them, and has invested more than $300 million. It says its provisional awards should be permanent.
Source: Airline Business
