Bolivian state airline set for takeoff next year

[Judi Lynn]

Bolivian state airline set for takeoff next year
Fri Dec 5, 2008 1:37pm EST

By Carlos Alberto Quiroga

LA PAZ, Dec 5 (Reuters) - Bolivia will launch a new state airline in January, filling a gap left by last year's collapse of its privatized flag carrier as President Evo Morales steps up his control of the economy.

The leftist Morales has nationalized energy and mining firms since becoming Bolivia's first Indian president in 2006, and his government also plans state-run cement and paper companies.

The nascent airline, called Boliviana de Aviacion, or BoA, will take delivery of its first two aircraft by the end of 2008, General Manager Ronald Casso told Reuters on Friday, adding that another three would soon be leased.

"The aim is to build a serious airline ... that's the starting point of BoA," Casso told Reuters in a phone interview.

He said BoA would initially only cover domestic routes in the poor South American country, but the company is already considering international flights in the medium term.

Morales announced the plan to create a new state-run carrier just over a year ago and pledged to invest some $15 million to get it up and running.

BoA will fill a void left by the collapse of Lloyd Aereo Boliviano, the former state-run airline that was privatized in the late 1990s.

More:
http://www.reuters.com/article/mergersNews/idUSN0546394620081205?rpc=401&