Operations of Peru’s Aerocontinente Put on Hold

The Peruvian government has grounded Aerocontinente, the nation’s flagship airline, because the company failed to hand in the required documentation to get an insurance policy that can keep it up in the skies.

The air carrier is going through the worst of times since last June when the U.S. government included Aerocontinente founder Fernando Zevallos on the list of the world’s most wanted drug ringleaders, charged with building his company on laundered money coming from fraudulent activities.

Washington’s blacklisting of Mr. Zevallos automatically banned Aerocontinente from doing business with U.S. citizens or companies.

The Peruvian government has set going a contingency plan and has called in TACA Peru, Aerocondor, Magenta Air, TANS, LC Busre, ATSA and Lan Peru in an effort to keep the flow of passengers running smoothly in and out of the country.

Aerocontinente was founded in 1992 and –according to official stats- it carries 4,000 passengers in 25 daily domestic flights from Lima to fourteen different Peruvian provinces. The company ceased all international operations last June.