Peruvian Airlines Becomes The Latest Airline To Suspend Operations

Peruvian Airlines has become the latest casualty in a plague of operational suspensions and bankruptcies that seems to be sweeping the aviation world. It has now become the fourth airline to succumb to this fate within the past two weeks, after Adria Airways filed for bankruptcy on 30th September.

Peruvian Airlines cease operations. Photo: Anthony Tong Lee via Flickr

The details

Communication officials at Peruvian Airlines announced on its website yesterday that all flights would be suspended until further notice. Translating the statement from Spanish, the airline said that the ultimate explanation for ceasing operations was its inability to operate normally, which created:

“a lack of confidence within travel agencies which significantly reduced their sales…”

The reason for mistrust between the agencies and the airline was sparked recently when Peruvian Airlines was forced to abandon operations for half a day on 30th September. This was an issue onset by troubles the airline had faced earlier in the week, regarding the local authorities.

Sanctions for unlawful behavior

In the press release, the airline blamed a “lack of liquidity” as the reason for its demise. Authorities shut off access to Peruvian Airlines’ bank accounts earlier this week making it impossible for the airline to access funds.

Peruvian Airlines claims that its accounts were frozen as a penalty for unlawful action “due to the valuation difference in the temporary importation of 2 commercial aircraft”. It declared a lower and therefore incorrect, invoice on these two aircraft to the National Superintendence of Customs and Tax Administration (SUNAT) who then took action to suspend the airlines’ funds.

The funding issues not only caused disruption for travel agencies during the half-day service cancellations but also meant that Peruvian Airlines couldn’t keep on top of its operating costs. It was also unable to pay its fuel providers.

Operating costs were unfulfilled due to frozen bank accounts. Photo: Primx28 via Wikimedia Commons

Peruvian Airlines said that it could not recuperate itself from this situation and had unfortunately been forced to cease operations until further notice. There will be no more services flying from its Lima base.

What will happen to its passengers?

According to a report from America TV, passengers were left stranded at Jorge Chavez International Airport with luggage and a lack of clarification as to what was going on. It reports that none of the staff in Peruvian Airlines’ offices were able to give any reasons for the suspension and there is now a sense of uncertainty as to what will happen to passengers on flights that have already been booked.

For this, Peruvian Airlines’ website offers no solution. It simply gives a number to call and ensures all who visit that it is “making efforts with new investors to refloat the company.” The website sends out its deepest apologies and ensures it is looking for a prompt solution.

Video of the day:

A21 suggests that the airline is working with the General Directorate of Civil Aviation to offer an alternative for passengers until normal service resumes – whenever that will be.

Who will provide a payout?

How likely is it that a new investor will be found?

As we’ve previously seen, finding investors willing to save a struggling airline can take time. Jet Airways was on the brink of bankruptcy for many months whilst bids were given and then withdrawn and disapproved. It’s unlikely that Peruvian Airlines will be able to remain faithful on its promise of a quick fix.

Who will want to invest in the airline? Photo: Anidaat via Wikimedia Commons

Peruvian Airlines could not be contacted for comment on this issue.

Who are Peruvian Airlines?

Founded in 2007, Peruvian Airlines has been flying in our skies for just over a decade. It started operations in 2009 flying out of its base at Jorge Chavez International Airport in Lima, Peru.

According to Air Fleets, its aircraft number 13 and are all Boeing 737 models. Last year, one of its fleet made headlines after it crashed in El Alto Airport after a landing gear collapse.

How do you feel about Peruvian Airlines’ actions? Does this story make you uncertain about the future of aviation? Let us know in the comments.

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Brian Seitz

Just found out about this when we went to check in for our flight from LIM to CUZ…. that was a shock! Can’t say I have any experience with Peruvian, but we are assuming we’ve kissed our money goodbye and rebooked on Latam. The phone number in the notice on their webpage seems to be a dead-end audio recording, but my Spanish isn’t good enough to really understand it. Nightmare come true!