With losses of US $ 400 million, Ecuador closes state airline

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The Ecuadorian government announced the liquidation of Tame, a state-owned airline that has been immersed in a difficult economic situation for years and was made worse by the covid-19 pandemic. According to El País, the liquidation comes after losses of more than US $ 400 million in the last five years and is part of a plan to reduce the size of the public sector with the elimination of up to seven state-owned companies. Ecuadorean President Lenín Moreno said he will preserve routes on which there are no other private alternatives, but he has not detailed how he will do so.

Tame, born in 1962 as a military airline to “facilitate the transport of passengers and cargo to the main cities of the country and to articulate territories that are difficult to reach by land”, today competes with two more national airlines: Latam Ecuador and Avianca Ecuador, both with foreign capital. The airline operates nine destinations from the capital, Quito; two from the main Ecuadorian economic pole, Guayaquil; and one more from the Galapagos Islands. It is on these internal routes that continuity is in doubt. Abroad, it flies from Quito and Guayaquil to Fort Lauderdale (Florida, United States) and Cali (Colombia).

Source: El País

The Ecuadorian government announced the liquidation of Tame, a state-owned airline that has been immersed in a difficult economic situation for years and was made worse by the covid-19 pandemic. According to El País, the liquidation comes after losses of more than US $ 400 million in the last five years and is part of a plan to reduce the size of the public sector with the elimination of up to seven state-owned companies. Ecuadorean President Lenín Moreno said he will preserve routes on which there are no other private alternatives, but he has not detailed how he will do so.

Tame, born in 1962 as a military airline to “facilitate the transport of passengers and cargo to the main cities of the country and to articulate territories that are difficult to reach by land”, today competes with two more national airlines: Latam Ecuador and Avianca Ecuador, both with foreign capital. The airline operates nine destinations from the capital, Quito; two from the main Ecuadorian economic pole, Guayaquil; and one more from the Galapagos Islands. It is on these internal routes that continuity is in doubt. Abroad, it flies from Quito and Guayaquil to Fort Lauderdale (Florida, United States) and Cali (Colombia).

Source: El País

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