Xavier Rivera leads a group of Ecuadoreans who have taken over LanEcuador in an eleventh-hour reshuffle designed to satisfy the US Department of Transportation (DoT).
The DoT denied LanEcuador's first application for flights to the USA because it did not meet ownership and control requirements in the USA-Ecuador bilateral. LanChile, which owned all of LanEcuador, had expected DoT approval anyway because LanChile previously operated Ecuador-USA flights for Ecuatoriana without receiving any objection from Washington.
After DoT's ruling, LanChile scrambled to find local investors and sold 55% of its subsidiary to Translloyd, an Ecuadorean company. Rivera owns 30% of Translloyd.
Two other local companies have 60%, with the 10% balance owned by Ecuadorean handling and sales agent Transoceanica. It represents several foreign ocean and air carriers, including LanChile and Lufthansa.
Rivera, besides his direct stake in Translloyd, is also executive vice-president of Transoceanica. Now he has become chairman and chief executive of LanEcuador.
Two other local directors give Ecuadoreans a majority on LanEcuador's five member board. Antonio Stagg Rivas, who worked for Transoceanica and Lufthansa, is LanEcuador's new general manager. Jimena Erazo, former chief financial officer at Ecuatoriana, has become new finance manager. With these changes, LanEcuador plans to launch US service in March.
DAVID KNIBB SEATTLE
Source: Airline Business