Peru suspended passenger flights of domestic carrier Aerocondor on Wednesday over safety concerns, a ruling that could help Chile's LAN consolidate its dominance of the Andean country's airline market.
Aerocondor competes with LAN and two smaller carriers, Star Peru and LC Busre, in Peru, one of the fastest-growing economies in the world.
"Safety precautions are being taken for passengers in light of repeated incidents," the transport ministry said. The ruling allows the company to fly charter routes, but not scheduled flights.
Aerocondor suspended all flights of its 737-200 aircraft because of high fuel prices.
On Tuesday, engine trouble prevented an Aerocondor flight from taking off from the city of Cajamarca. A week earlier, mechanical trouble forced a plane to turn back to the Amazon city of Pucallpa.
