AeroPeru’s story can be traced back to 1973 when the Peruvian government was needed to create an airline that would link major cities, separated by a difficult geography, as well as to replace the airline recently broken APSA (Aerolineas Peruanas Sociedad Anonima), which until 1972 had been the flag carrier. Thus, on May 22nd of that year, AeroPeru was officially founded, and quickly became the first airline in the country. The first flight took place on October 3rd, 1973, to Cuzco, once capital of the ancient Inca empire, and now Peru’s tourism capital, serving as a gateway to Machu Picchu. The company began operating with three Fokker F28s, very modern aircraft at the time. AeroPeru’s motto summed up the company philosophy: “proud to work to form a great team and to carry the name of Peru in the air.”
In 1974, AeroPeru undertook a program expansion of its operations, opening its first international route to Buenos Aires via Santiago. On the morning of July 28th, the Douglas DC-8 left the Jorge Chavez International Airport from Lima to Santiago de Chile in three hours.
Through the decade other international destinations were added to the list: Miami, Los Angeles, Panama, Bogota, Mexico City, Caracas, Guayaquil, Quito, La Paz, Rio de Janeiro and Sao Paulo. The extraordinary growth undertaken during the 70′s and 80′s forced the company to make improvements to the fleet. In 1978, AeroPeru was the first South American airline to introduce the advanced Lockheed L-1011 TriStar. The two aircraft were delivered to AeroPeru for high demand routes such as Buenos Aires-Santiago-Lima-Miami – a traditional route, the gold mine for the Peruvian airline.
These aircraft were, however, withdrawn from the fleet for the DC-8s acquired from United Airlines as its operating costs were less expensive and better suited to the route network of the airline. The Boeing 727-100s were also added to the fleet during the 80s. Halfway through the decade, AeroPeru had a system of large international and domestic routes. The airline bonded Peru to Chile, Argentina, Bolivia, Brazil, Ecuador, Colombia, Venezuela, Panama, Mexico and the United States.
On January 16th, 1993, as part of the government effort to privatize state enterprises began to contract the airline to be sold to the highest bidder. This was acquired by AeroMexico DBA (Aerovías of Mexico), directed by Gerardo de Prevoisin. AeroPeru operations grew and raised standards and adopted a new corporate image based on AeroMexico.
In 1995, as a subsidiary of AeroMexico, AeroPeru control was assumed by the Cintra group, a conglomerate owned by the Mexican government, which acquired the assets of bankrupt Mexican banks that had collapsed during the “Tequila economic crisis.” From 1993 until its bankruptcy in 1999, AeroPeru had established an alliance called “Wings of America” with AeroMexico and Mexicana, which involved code-sharing rights, agreements, maintenance and crew training. This agreement was included in the transfer of modern aircraft to replace the old planes that had flown on the airline for many years. Two DC-10-15s and two 727-200s were transferred from Mexico to replace the outdated DC-8s and F28s of the airline. When the DC-10 was found too large for the operations of the company transferred AeroMexico two brand new 757-200s. By the mid-90s had consolidated its position AeroPeru international services to major cities across America.
In 1995, AeroPeru joined Lima to Santiago, Buenos Aires, Sao Paulo, Rio de Janeiro Asuncion, La Paz, Santa Cruz, Quito, Guayaquil, Bogota, Caracas, Panama City, Cancun, San Jose, Mexico City, Miami, New York, Los Angeles, Isla Margarita, Punta Cana and Varadero.
From 1997 to 1999, AeroPeru based his fleet into two types of aircraft: the Boeing 727 (100 and 200 versions) for domestic and South American routes, and the efficient Boeing 757-200 for transcontinental routes to the United States, Mexico, Brazil, Argentina and Chile. In an attempt to improve their status and financial services, AeroPeru continued to grow with the cooperation of AeroMexico and Mexicana in the alliance “Wings of America”, while also part of another alliance with the equadorian airline Saeta, called “Alianza Andina”.
However, things became difficult in 1996 when one of its Boeing 757-200 aircraft crashed in Callao, on the coast of Lima, on a routine flight to Santiago de Chile. 70 passengers died on the flight, was indeed the saddest day in the history of the airline. The airline will lose many customers as its image would be tarnished after the discovery of the cause of the accident: someone at its maintenance base had forgotten to take a tape that covered the visual aids that directed the aircraft. Apart from lost revenue incurred in bad publicity, the airline was obliged to pay more than USS70 million in damages to members of the families of the victims.
Before September 1998, AeroPeru considered purchasing a 767-200ER and-300ER (*) and also decided to replace the Boeing 727. Financial problems with fierce competition from AeroContinente, AeroPeru forced to return to operate the Boeing 727s in February 1999. These aircraft were superseded by an order for eight Boeing 737-300 high-capacity, fuel efficiency, previously operated by British Airways. In an effort to improve productivity, a new codeshare agreement was signed with Avianca, for the segment Lima – Bogota, and Servivensa, on routes Lima – Caracas – Porlamar and Caracas – Punta Cana
(*) In the early 80s, AeroPeru operated in wet lease with the English Britannia Boeing 767 200ER aircraft for its international operations.
In an effort to inject much needed cash for operations, Cintra sold 35% of its shares in the airline AeroPeru Delta Airlines in early 1998. Delta saw this as a great opportunity to increase its presence in Latin America from its hub in Atlanta. The U.S. company injected capital to maintain operations of the company. The same year, Peruvian operators considered a set of regional routes with 4 to 5 Jetstream 32s, however, after a year of purchase of shares by Delta Airlines, AeroPeru was unable to raise its operations to meet standards Delta, which did not satisfy the people of Atlanta. Therefore, in March 1999, Delta Airlines and the Cintra group rejected the additional investment in the company.
AeroPeru desperately sought a new investor to come to their aid. Continental and American Airlines showed great interest, but when considering the future operation, coupled with the difficult political situation that the country was about to face, they decided to go back before closing the deal.
The financial problems that plagued the airline as a result of poor privatization process, determining the cessation of AeroPeru, declaring the March 10, 1999 the final day of the airline. At the time of the stoppage, the company had a debt of USS174 million, a large amount for an airline with only 10 aircraft (three 727-200s, four 737-200s three 757-200s). The whole fleet was returned to the lessors in May 1999.
Since 1999, there were several attempts to revive AeroPeru, including one of Continental Airlines and one by the employees of the company, led by Celso Gonzalez and Eduardo WASLI. A 737-200 (N412CE) had been leased and came with the new paint scheme by September 2000, also will put the finishing touches to a 727-200 ADV, which in turn was operated by the defunct American Airlines. However, the difficult economic and political conditions in the country blocked the revival of AeroPeru. The bankruptcy marked the end of an era in Peruvian commercial aviation and the principle of new companies reflect a liberalization of the skies, and a great effort to make Peru the center of the Latin American tourism.