Peruvian Govt plans to establish new carrier, possibly LCC model

Peru's Government is reportedly planning to establish a new carrier, to be named Aerolíneas del Perú, in an attempt to make travelling more affordable for Peruvians and provide air links to key markets. According to AméricaEconomía reports, private partners are expected to provide all the capital for the new carrier while the state will be responsible for all airport infrastructure. The Government is considering basing the new carrier, which would need an initial start up investment of approximately USD70 million, on the LCC model. The carrier would initially operate a fleet of six leased A316 jets and six Bombardier aircraft. According to Innovata, LAN is the largest carrier operating in Peru and for the week commencing 06-Feb-2012, will deploy 166,666 seats in the market. Peru's largest market for air services is Lower South America, followed by Upper South America and North America.