LAP PARAGUAYAN AIRLINES (LINEAS AEREAS PARA-GUAYAS, S. A.): Paraguay (1962-1994). LAP is formed at Asuncion in late 1962 as Paraguay’s national airline and is at first, essentially, the international arm of the military’s domestic carrier TAM (Transportes Aereo Militar). Initial capitalization is 200 million Guaranis (some $700,000) and the board of directors includes four military representatives. All operations personnel are air force officers.
Early in 1963, three Convair CV-240s are purchased from Aerolineas Argentinas, S. A. They are christened Carlos Antonio Lopez, General Bernardino Caballero, and Jose Gaspar Rodriguez de France and are employed to begin twice-weekly flights to Rio de Janeiro, Buenos Aires, and Sao Paulo in August.
In early 1964, an agreement is negotiated with Cruzeiro do Sul, S. A. whereby the latter will provide ticket, baggage handling, and other ground support services at Brazilian destinations.
Following the demise of LAPSA (Lloyd Aereo Paraguayo, S. A.) in 1965, LAP has a free hand to develop additional frequencies in 1966-1968 into Brazil as well as Chile, Bolivia, and Uruguay.
A CV-240 with 5 crew and 18 passengers crashes onto the runway at Buenos Aires while on final approach on May 26, 1967; although the aircraft is destroyed, there are no fatalities.
In December 1968, the carrier purchases one Lockheed L-188A and two L-188C Electras from Eastern Air Lines.
Repainted in LAP’s red-on-white livery, the ex-EAL turboprops are placed into service in February 1969 on routes from Asuncion to Buenos Aires, Montevideo, Rio de Janeiro, and Sao Paulo. Service continues apace in 1970-1971.
Domestic service is enhanced in 1972 by the addition of a Douglas DC-3. L-188C flights into the Argentine communities of Jujuy, Re-sistencia, and Salta commence in 1973-1974. Electra frequencies are initiated to Lima and Santiago de Chile in 1975-1977.
Three years later, in October 1978, the company purchases two Boeing 707-321Bs from Pan American World Airways (1), employing them on November 17 to begin stretching the Lima route twice-weekly to Miami. Following the award of a Florida permit, the U. S. CAB joins the Paraguayan government in granting permission for a new marketing title—Air Paraguay. At this point, President Luis A. Gonzales Ravetti’s airline has 500 employees.
On November 2, 1979, a B-707-321B inaugurates European service with a flight to Frankfurt via Rio de Janeiro and Madrid. There is no change in either fleet or operations during 1980-1983.
On December 20, 1984, the fleet is increased by the addition of a DC-8-63 formerly flown by Air Canada, Ltd. and in 1985 another B-707-321B is added to the fleet and Brussels is added to the European route network.
Operations continue apace in 1986-1988 and in March of the latter year an agreement to integrate routes is signed with LAB (Lloyd Aero Boliviano, S. A.) and PLUNA (Primera Uruguayas de Navegacion Aerea, S. A.) of Uruguay.
In 1989, the fleet includes 3 B-707-321Bs and 1 each Douglas DC-861 and DC-8-63. The three Lockheed Electras go out of service, but during the spring, weekly Asuncion to Brussels DC-8-63 service is inaugurated via Dakar, Madrid, and Frankfurt.
As the result of problems associated with its old equipment and plagued with large annual losses, 50% of the carrier is put up for sale by the government in July. The DC-8-61 is taken out of service in 1990 and replaced by a leased DC-8-71.
An L-188C is returned to the fleet in 1991. In late spring, the executive branch of the government proposes a privatization plan under which shareholding would be divided between VASP Brazilian Airlines (Via-cao Aerea de Sao Paulo, S. A.) (30%), Paraguayan investors (30%), VASP employees (5%), and the government (30%). The U. S. informs the national legislature, which must approve the arrangement, that the major Paraguayan investors had previously been involved in aircraft transactions with the Medellin drug cartel; consequently, the plan is defeated. With $180 million in foreign debt, the company lays off 1,170 employees — 30% of the workforce—while seeking to accelerate the privatization process.
A major fleet change is made in 1992. Two B-707-321Bs are taken out of service and are succeeded by a leased British Aerospace BAe 146300.
The chartered BAe 146-300 and DC-8-63 are returned in 1993. Chairman Gen. Geraldo Johansen Roux and President Raul F. Calvert oversee a workforce of 1,000. Destinations visited from Asuncion include Brussels, Buenos Aires, Frankfurt, Lima, Madrid, Miami, Santa Cruz de la Sierra, Santiago, Montevideo, Rio de Janeiro, and Sao Paulo. A wet-leased DC-10-30 is obtained from European Airlift in September.
During the first quarter of 1994, the company ceases flights to Europe. Later in the same time frame, frequencies are suspended to Montevideo, Buenos Aires, Sao Paulo, Rio de Janeiro, and Miami. With a total debt of $41 million, LAP closes its doors in April, at which time the nation’s Senate opens a special line of credit to cover the firm’s debt.
A consortium of Paraguayan investors, joined by SAETA (Sociedad Anonima Ecuatoriana de Transportes Aeros, S. A.), has the winning bid when the government places LAP in the privatization market during the fall. The group, in October, makes a $22.1-million offer for an 80% stake. The carrier is reborn as LAPSA Air Paraguay, S. A.
LAPA (LINEAS AEREAS PATAGONIAS ARGENTINAS, S. R.L.): Argentina (1960-1966). Formed at Buenos Aires in late August 1960, LAPA is authorized to perform nonscheduled all-cargo charters throughout the country and beyond to the rest of Central and South America. Revenue services commence the following month with a pair of Curtiss C-46 Commando freighters.
Services continue without significant event until 1964, when the company acquires a Lockheed L-1049 Super Constellation. Too expensive to operate and having drained the concern of its resources, the huge aircraft is grounded and the company is forced suspend operations in September 1965.
New support is generated and a second Super Constellation is acquired. The new aircraft crashes in March 1966 while on its delivery flight. Evidence is found that it had been smuggling cigarettes and the government consequently cancels LAPA’s license.
World History
