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Aero Continente to sue Chilean government.

AIRLINE INDUSTRY INFORMATION-(C)1997-2002 M2 COMMUNICATIONS LTD

Peruvian airline Aero Continente has filed a lawsuit against the Chilean government for damages allegedly caused after the government suspended the airline's operations in July 2001.

A Chilean judge reportedly ordered the suspension after the state attorney's office accused the airline of drug-related money laundering. The court order was lifted two months later due to lack of evidence. However, the airline was only able to partially renew flights in the final quarter of 2001 with a fraction of its previous staff. Financial troubles led it to dismiss 400 of its 600 employees in 2001.

The airline has not specified how much it is suing the government for, leaving the decision up to the judge, according to Reuters.

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Publication:Airline Industry Information
Date:Apr 26, 2002
Words:137
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