Bailout plan rejected for Bolivia's AeroSur - WAOW - Newsline 9, Wausau News, Weather, Sports

Bailout plan rejected for Bolivia's AeroSur

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LA PAZ, Bolivia (AP) -

Bolivian regulators have rejected a $15 million bailout plan for troubled AeroSur and have given the grounded airline until July 11 to resume flights or lose its license.

The decision favors the 3-year-old state-owned Boliviana de Aviacion, which now has a virtual domestic monopoly and says it plans to begin flights to Spain and the United States.

The state transportation regulatory agency said Wednesday that the bailout offered by U.S. investor William Petty was insufficient, given AeroSur's debts of more than $100 million.

AeroSur abandoned international flights last year and halted all flights last month after the government announced that it owed back taxes dating to 2006.

Its ex-owners claim political persecution. Critics accuse President Evo Morales' government of unfairly favoring Boliviana de Aviacion.

(Copyright 2012 by The Associated Press. All Rights Reserved.)

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