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Peru Grounds Top Airline
Peru grounded the nation's largest airline, citing the carrier's inability to find an insurance policy after it landed on a U.S. government blacklist for suspected drug traffickers. The Transportation Ministry said in a statement Monday that it had suspended the operations of Aero Continente, adding that a contingency plan would be started to allow other airlines to take over its flight routes. Aero Continente handled between 60 percent and 70 percent of Peru's domestic aviation market. The decision came amid Peru's peak tourist season and the Copa America soccer tournament being held in several Peruvian cities.The airline's insurance policy expired on Saturday. That same day an emergency presidential decree, published in Peru's official gazette El Peruano, said the Finance Ministry would act as a financial guarantor for Aero Continente for "a period not to exceed 30 days." But the Transportation Ministry said Monday that the government and the airline had been unable to find a replacement insurer. The world's largest airline insurer, Global Aerospace, pulled its contract with Aero Continente after the U.S. government blacklisted the airline on June 1. The American blacklisting prohibits U.S. citizens or companies from conducting business with Aero Continente, its top executives or its subsidiary companies. Global Aerospace is partially owned by U.S. interests. It is illegal under Peruvian law and international regulations for airlines to fly without insurance policies that cover the planes and the passengers and cargo they carry. Aero Continente founder Fernando Zevallos, 47, has been the subject of numerous U.S. drug probes, but has never been convicted of a crime and denies any wrongdoing. He is now on trial in Peru on drug trafficking and money laundering charges. Aero Continente lost permission to enter U.S. air space in April after failing a safety inspection by the Federal Aviation Administration. After the blacklisting, the airline dropped its international flights that included a daily route to Miami. Aero Continente's fleet of some two dozen planes served 15 Peruvian destinations with about 30 domestic flights.
Posted by: Steve White 2004-07-13 |
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