Peru's government has decided to liquidate air force-operated TANS, which has been grounded since January after the fatal crash in August 2005 of one of its two Boeing 737-200s.

The fate of military airlines in Latin America is a rough measure of how strong the armed forces are in most countries. TANS reached the apex of its support during the government of Peruvian President Alberto Fujimori nine years ago.

Since then the airline's future has been a growing topic of political debate. Its fate was sealed recently when Peru's newly elected President Alan Garcia declared that loss-making state companies will not be kept in sectors where private operations can meet demand. Aviation officials claim four privately owned airlines - Aero Condor, LAN Peru, Star Peru and Wayra Peru - adequately serve the country. ■

Source: Airline Business