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Cash-strapped South American airline suspends operations

Tuesday, 8 October 20193 min read
Cash-strapped South American airline suspends operations

Yet another airline could be about to bite the dust.

Peruvian Airlines is in trouble, and has suspended all flights ‘until further notice,’ it said.

Last week the Peruvian customs department froze its company accounts after apparently underpaying taxes on two Boeing 737 Max aircraft it took delivery of.

That then led to flight suspensions for half a day as it could not access funds to pay for fuel deliveries.

This was a catalyst which led to a ‘distrust with travel agencies that significantly lowered their sales, affecting even more the cash flows,’ the airline said in a statement.

The Lima-based airline is the nation’s second largest and was founded a decade ago.

"We deeply regret the inconvenience that our passengers are experiencing and we reiterate our commitment to provide a prompt solution," it said.

It is exploring options with potential new investors in an attempt to get off the ground again.

It operated a fleet of 11 Boeing 737 family aircraft to domestic destinations from its base at Lima’s Jorge Chvez International Airport.

It has been a challenging few weeks for the airline industry, particularly in Europe, with several high profile collapses.

These include Aigle Azur, XL Airways, Adria Airways and Thomas Cook Airlines.