MercoPress. South Atlantic News Agency

Southern Winds declares bankruptcy.

Argentine airline Southern Winds yesterday filed for bankruptcy protection with Commercial Court 15, according to the court's Web site.

Ever since the government pulled the plug on its assistance programme through LAFSA ? which injected some seven million pesos a month into the ailing airline ? yesterday's measure was seen as inevitable in the market unless a private investor had come to the rescue.

Meanwhile the court investigation into the drug trafficking scandal involving Southern Winds staff continued yesterday with the questioning of SW Vice-President Enrique Montero by investigating judge Carlos Liporace. Montero was in court on the basis that he was on the same flight on which the 60 kilos of cocaine were sent to Barajas airport in Spain.

Southern Winds was founded in 1996 by Juan Maggio and began operations out of Córdoba's Pajas Blancas international airport.

Using small aircraft, the airline expanded rapidly by linking up provincial towns not served by the major airlines and offering flights to Ezeiza International Airport in Bs. Aires. The success of this strategy led the airline to start operating main-route flights out of Buenos Aires in 1999, although this was a step away from the model that had proved so successful for the airline.

In 2001, the year of Argentina's economic meltdown, the airline was authorized to start offering international flights to Miami and Madrid, among other destinations.

In related news, Chilean airline LanChile has acquired local charter airline Aero2000, a company belonging to Argentine businessman Miguel Ciadi, Aviation Secretary Ricardo Cirielli said yesterday.

Aero2000 was set up in October 2001 and was authorized to fly to Córdoba, Iguazú, Calafate, Bariloche, Montevideo, Santiago de Chile, Miami and Madrid, but has no aircraft.

The government gave the go ahead to the operation on the condition that the new Chilean operation, to be called LAN Argentina, takes on all the staff of LAFSA and Aerovip as well as supports Southern Winds for three months, an agreement that had already been reached last Friday.

According to Cirielli, Lan Argentina would also eventually absorb Southern Winds staff, should the airline be unsuccessful in its bankruptcy protection that was filed yesterday. (BAH)