Alas Uruguay

Alas Uruguay was a privately owned Uruguayan airline established by former employees of PLUNA, the country’s former flag carrier, after PLUNA ceased operations in 2012. The venture was conceived as an employee-led attempt to restore commercial air services and preserve aviation employment in Uruguay. Unlike PLUNA’s later mixed-ownership structure, Alas Uruguay was organized as a private company owned and managed by its workers. The airline was initially known as Alas-U and adopted the name Alas Uruguay in October 2013. Its preparation period was prolonged by difficulties obtaining financing, aircraft, regulatory approvals and the operational resources required to launch a scheduled airline. The company eventually assembled a fleet of three leased Boeing 737-300 aircraft. The aircraft had previously been operated by Ukraine International Airlines and Southwest Airlines and were fitted with blended winglets. Alas Uruguay began commercial operations on 21 January 2016 with a flight from Montevideo to Asunción, Paraguay. It added service to Buenos Aires, Argentina, on 27 January. Its principal operating bases were Carrasco International Airport in Montevideo and Capitán de Corbeta Carlos A. Curbelo International Airport near Punta del Este. The business remained focused on a small regional network rather than a broad international operation. Proposed services to Brazil and Chile did not materialize, and the Asunción route was withdrawn on 12 October 2016 because it was not profitable. The airline operated for approximately nine months. Financial difficulties, heavy indebtedness, limited route economics and competition in the regional market placed sustained pressure on the business. On 24 October 2016, its last remaining aircraft was repossessed by its lessor, and the airline requested a 60-day suspension of activities from Uruguayan authorities. It did not resume service after the suspension period and subsequently lost its air operator’s certificate. The company was later declared bankrupt. Alas Uruguay owed approximately US$15 million to the Uruguayan government under a start-up loan and a further US$4.9 million to suppliers, according to the cited reference material. Negotiations with Chilean airline Latin American Wings to take over the company were unsuccessful. In 2017, Azul Brazilian Airlines was reported to be discussing the possible creation of a Uruguayan subsidiary that could use some of Alas Uruguay’s routes and staff, but this did not turn Alas Uruguay into an operating successor. The brand’s historical importance rests primarily in its attempt to rebuild Uruguay’s airline sector through employee ownership after PLUNA’s collapse, rather than in the scale or longevity of its own network.

Alas Uruguay emerged from the disruption caused by the closure of PLUNA in 2012. PLUNA had been Uruguay’s principal flag carrier and had operated for much of its history as a state-owned enterprise before later operating under mixed ownership. Its shutdown left a pool of experienced aviation workers without employment and created a gap in Uruguay’s scheduled air transport market. A group of former PLUNA employees responded by organizing a new airline based on employee ownership and management. The new venture was founded in 2013. It initially used the name Alas-U, but changed its name to Alas Uruguay in October of that year. The project required nearly three years of preparation before commercial flying began. During that period, the employee-led company had to secure financing, arrange aircraft leases, satisfy regulatory requirements and build the operating infrastructure needed for passenger service. These preparations were complicated by the financial demands of starting an airline in a relatively small market. Alas Uruguay eventually leased three Boeing 737-300 aircraft. The first aircraft arrived in January 2015 and had previously been operated by Ukraine International Airlines. A second aircraft from the same former operator and a third aircraft previously used by Southwest Airlines followed later in 2015. The aircraft were equipped with blended winglets. The fleet allowed Alas Uruguay to pursue a modest regional network using a familiar narrow-body aircraft type. Commercial service began on 21 January 2016, when the airline flew from Montevideo to Asunción, Paraguay. Six days later, on 27 January, it began service to Buenos Aires, Argentina. Carrasco International Airport in Montevideo and Capitán de Corbeta Carlos A. Curbelo International Airport in Punta del Este served as its bases. The airline also considered routes to Brazil and Chile, but those plans were never implemented. The operating period was brief. Alas Uruguay withdrew from the Asunción route on 12 October 2016 because the service was not profitable. By then, the company was experiencing serious financial pressure and was heavily indebted. On 24 October 2016, its last remaining aircraft was repossessed by the lessor. Alas Uruguay then asked Uruguayan authorities for a 60-day suspension of activities, but it never returned to the skies. At the end of that period, it lost its air operator’s certificate. The airline’s reported liabilities included approximately US$15 million owed to the Uruguayan government under a loan intended to support its launch, as well as approximately US$4.9 million owed to suppliers. A proposed takeover or rescue involving Chilean airline Latin American Wings did not succeed. Alas Uruguay was subsequently declared bankrupt. In 2017, Azul was reported to be considering a Uruguayan subsidiary that could assume some routes and employ some former Alas Uruguay personnel, although this was a separate proposal rather than a continuation of the Alas Uruguay brand. Alas Uruguay therefore became a short-lived chapter in Uruguay’s post-PLUNA aviation history. It demonstrated the ability of former airline employees to organize a new carrier and obtain aircraft and regulatory approval, but it could not overcome the combination of high start-up costs, limited traffic, unprofitable routes, debt and competitive regional conditions.

• 2017

  Bankruptcy and possible successor discussions

  [1]Alas Uruguayen.wikipedia.org

  Alas Uruguay was eventually declared bankrupt, while Azul separately discussed a possible Uruguayan subsidiary involving some former routes and staff.

• 2016

  Commercial flights begin

  [1]Alas Uruguayen.wikipedia.org

  Alas Uruguay began scheduled operations on 21 January with a Montevideo–Asunción flight and added Buenos Aires service on 27 January.

• 2016

  Asunción route withdrawn

  [1]Alas Uruguayen.wikipedia.org

  The airline ended its Asunción service on 12 October because the route was not profitable.

• 2016

  Flight operations suspended

  [1]Alas Uruguayen.wikipedia.org

  Operations stopped on 24 October after the lessor repossessed the airline’s final aircraft.

• 2015

  First aircraft delivered

  [1]Alas Uruguayen.wikipedia.org

  The first of three leased Boeing 737-300 aircraft was delivered in January, followed by two additional aircraft later in the year.

• 2013

  Employee-led airline founded

  [1]Alas Uruguayen.wikipedia.org

  A group of former PLUNA employees founded Alas Uruguay as a privately owned and worker-managed airline project.

• 2013

  Name changed from Alas-U to Alas Uruguay

  [1]Alas Uruguayen.wikipedia.org

  The venture adopted the Alas Uruguay name in October 2013.

• 2012

  PLUNA ceases operations

  [1]Alas Uruguayen.wikipedia.org

  The closure of Uruguay’s former flag carrier created the employment and market conditions that led former PLUNA employees to establish a new airline.

Employee-owned Uruguayan regional airline created as an attempted successor to PLUNA

• Passenger airline services · 2016

  Scheduled regional passenger flights

  Alas Uruguay’s core offering was scheduled international passenger transport using leased Boeing 737-300 aircraft. The airline operated a small regional network from Uruguay, initially connecting Montevideo with Asunción and Buenos Aires. Planned services to Brazil and Chile were not launched. Passenger operations ended in October 2016 and were not resumed.

• International route · 2016

  Montevideo–Asunción service

  This was the airline’s inaugural scheduled route, launched on 21 January 2016. It connected Carrasco International Airport in Montevideo with Asunción, Paraguay. The route was withdrawn on 12 October 2016 after proving economically unviable.

• International route · 2016

  Montevideo–Buenos Aires service

  Alas Uruguay introduced service between Montevideo and Buenos Aires on 27 January 2016, six days after its first commercial flight. The route formed part of the airline’s limited regional network during its nine-month operating period.

• 2016

  Withdraw the Asunción routeStrategy

  Background

  The Asunción service was not generating sufficient returns within the airline’s small regional network.

  Action taken

  Alas Uruguay discontinued the route on 12 October 2016.

  Aftermath

  The route network became even more limited shortly before the airline suspended all flying.

  Source

• 2016

  Request a temporary suspension of activitiesOther

  Background

  The airline faced debt, operating losses and the repossession of its final aircraft by the lessor.

  Action taken

  After stopping flights on 24 October, Alas Uruguay requested a 60-day suspension from Uruguayan authorities.

  Aftermath

  Operations never resumed and the airline eventually lost its air operator’s certificate before being declared bankrupt.

  Source

• 2013

  Adopt an employee-owned airline structureStrategy

  Background

  The closure of PLUNA left former employees without work and removed a major carrier from Uruguay’s aviation market.

  Action taken

  Former PLUNA employees established a privately owned airline managed and owned by its own workers.

  Aftermath

  The structure enabled the group to pursue a new carrier, but the airline later encountered severe financial difficulties and ceased operations.

  Source

• 2013

  Rename the venture Alas UruguayStrategy

  Background

  The airline project was initially known as Alas-U during its formation.

  Action taken

  The company changed its name to Alas Uruguay in October 2013.

  Aftermath

  Alas Uruguay became the operating brand used for the subsequent airline launch.

  Source

1. 1Alas Uruguayen.wikipedia.org