History
NOTE: This section relies only on one single source.
The airline was founded by Fernando Zevallos in 1992 as Aero Continente. Flight operations were launched on 25 May of that year, initially on regional chartered routes on behalf of Occidental Petroleum, a US-based oil and gas company. Scheduled domestic passenger services commenced on 20 July 1993, using a fleet of just two aircraft: a Boeing 727-100 and a Boeing 737-200. At that time, the Peruvian airline market was dominated by Faucett and Aeroperú. Aero Continente competed these airlines by offering extremely low ticket fares.
When Faucett and Aéroperu both went bankrupt in 1999 due to financial difficulties, Aero Continente acquired a monopoly position as the only airline operating on domestic routes in the country. By that time, the fleet size had been increased to approximately 30 aircraft, mainly of the 737 type, though larger aircraft like the Lockheed L-1011 TriStar were also used. During that period, international routes were launched, the first ones connecting Lima with Panama City and Santiago de Chile. This coincided with the foundation of Aero Continente Chile, a wholly owned subsidiary aiming at the Chilean domestic market using a fleet of five Boeing 737-200 aircraft handed down from its parent.
In late 1999, Aero Continente was ganted approval to operate on the prestigious Lima to Miami route. For this purpose, a Boeing 757-200 had been leased from Air 2000. After half a year, the leasing contract was terminated. The Miami route was henceforth offered by Aero Continente Chile from Santiago with a stopover at Lima with a Boeing 767-200 aircraft. By 2001, the combined international network of the Lima and Santiago based companies had grown to include Buenos Aires, Bogotá, La Paz, Caracas, Guayaquil and Santa Cruz de la Sierra.
In 2002, the company suffered a setback when Chilean authorities arrested several staff members of Aero Continente Chile over drug trafficking allegations, which forced the airline to cease all flight operations. As a consequence, the Chilean subsidiary was re-integrated into mainline Aero Continente, which claimed the grounding had been rather motivated by concerns that the company had become too strong a competitor for LAN Airlines, the Chilean flag carrier.
Aero Continente Dominicana, a second wholly owned subsidiary based in Santo Domingo, had been founded in late 2001. This short-lived business adventure lasted only roughly one year, operating a limited number of flights from the Dominican Republic to Miami. In 2003, after the Dominican subsidiary had failed, Aero Continente itself opened a small base Santo Domingo Airport, offering VFR flights to the Hispanic population centers in New York, Los Angeles and Madrid.
In 2004, though, Aero Continente had its approval to operate into the United States withdrawn by the Office of Foreign Assets Control of the United States Treasury, as its founder and key person, Fernando Zervallos, had been included in a list of the ten most wanted crime bosses of the illegal drug trade (Specially Designated Nationals). Thus, Aero Continente lost its insurance protection, as Global Aerospace, a partly US-based company which was responsible for this matter, was forced to cease its involvement with the airline. Consequently, all flight operations were ceased on 12 July of that year.
In a come-back effort, the company reacted by changing its ownership structure and adopting the new name Nuevo Continente, but could not get rid of the allegations that it was involved in criminal activities. In 2005, Nuevo Continente it had its airline licence revoked by the Peruvian authorities, officially due to safety concerns.
Read more about this topic: Nuevo Continente
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