Tue, Jul 06, 2004
Combination Of Factors Lead To Decree
An airline in trouble
with the law. A huge sporting event that will draw thousands.
Combined, these are the reasons Peru has declared a 90-day aviation
Last week, a Peruvian judge grounded Lan Airlines' subsidiary,
LanPeru, saying its permits were all wrong. The judge also ruled
LanPeru doesn't meet the required level of Peruvian investment.
LanPeru has so far thumbed its nose at the court ruling and
continues to fly. Last week's emergency decree ensures it will be
able to do just that.
All this comes in a lawsuit filed by competing airline
Andiandina, a small, local operation that says LanPeru is operating
There were other factors in the government's decision to issue
an emergency decree. Airport workers threaten to strike if the
government goes through with plans to privatize the country's
airport operations. The country's biggest airline, Aero Continente,
is in turmoil after its founder was named as a drug kingpin in the
US and the company's assets there were frozen.
And, of course, there's
the Copa America soccer tournament, which started Tuesday and will
run through July 25th. An estimated 35,000 soccer fans are expected
in Peru from 12 different countries. Put that all together and
Peru's aviation sector is in trouble.
The decree, issued last Wednesday, makes the aviation industry
the most important segment of the Peruvian economy for the next
90-days. It allows airlines to temporarily obtain aircraft from
companies outside Peru and allows the minister of transportation to
take special measures to ensure the planes keep flying.
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