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News > Peru

Peru Discusses Creating a State-Owned Airline

  • Travelers arrive at Jorge Chavez International Airport, Lima, Peru, Oct. 5, 2020

    Travelers arrive at Jorge Chavez International Airport, Lima, Peru, Oct. 5, 2020 | Photo: Twitter/ @Agencia_Andina

Published 24 December 2020
Opinion

Last year, 82 percent of passengers flying to domestic destinations traveled on LATAM Airlines, Viva Air, or Sky Airline, all foreign carriers.

Peru's Congress is debating a bill to create a state-owned airline to promote the national airline system and compete with foreign carriers operating in the country. 

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The initiative came after legislators were concerned about the low investment in local airlines in a nation dominated by foreign-owned companies such as Latam, Viva Air, or Sky.

For years, authorities incorporated foreign airlines to get companies to reduce ticket prices to create competition and attract travelers. However, the weaker airlines had to close, according to a Caribbean News Digital report.

The General Direction of Civil Aeronautics (DGAC) informed that in 2019, 82 percent of the passengers that flew to national destinations traveled in LATAM Airlines, Viva Air, or Sky Airline, all foreign companies.

In 2017, Colombia-based Viva Air was the first low-cost airline to arrive in Peru to compete with LATAM, which led the market. 

This 2020, authorities worried about the precarious situation of local airlines. In May, then-Transport Minister Carlos Lozada assured that Peru was considering creating its airline, "but not just yet."

Transport Minister Eduardo Gonzalez, who took office in November, assured that in 2021 Peruvians will have more international destinations to visit. 

"We will promote investment projects that will improve the lives of thousands of families," he tweeted, alluding to the bill that will permit the creation of a state-owned airline.

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