Ecuatoriana Pt3: VASP to the Rescue?

Ecuatoriana's cessation of operations in 1993 had been something of a shock as the airline's financial condition was unknown even though its service levels had been decreasing. Despite a lengthy period out of operation Ecuatoriana wasn't finished however, and a white knight appeared in the form of the Brasilian airline VASP. VASP was keen to form a pan-South American VASP Air System including Ecuador's colourful national carrier.

Ecuatoriana McDonnell Douglas DC-10-30 HC-BKO Aeroclassics 1:400 Scale Model Airliner

VASP was a Sao Paulo based Brasilian scheduled carrier which had been privatised in 1990 and under its new owner and president, Wagner Canhedo, had decided on an expansion push. It doubled its fleet using 737-300/400s and DC-10s and began international services, however by 1993 it was forced to return most of the aircraft due to failure to pay leasing fees. This didn't stop the airline though and in 1994 a second international expansion began using new MD-11s. VASP dreamed of creating a VASP Air System and the cornerstone of this policy was to buy into failing South American airlines and operate them together.

VASP Air System advert in Billboard magazine November 1997

Accordingly in 1995 it acquired controlling interests in Lloyd Aereo Bolviano (LAB) of Bolivia, TAN of Argentina and Ecuatoriana. VASP acquired 49% of the non-flying Ecuadorian airline with a further 10% going to Ecuadorian investor Juan Eljuri Anton and the remainder staying with the Ecuadorian government. Opeations were restarted in 1996 using a trio of 727-200s (one ex-Northwest and two ex-Aerolineas Argentinas). VASP also acquired the old Ecuatoriana DC-10-30 HC-BKO and re-registered her as PP-SFB in May 1996.

VASP wet-leased Ecuatoriana's old DC-10 back to the airline so that international services to Miami and New York could be restarted, from June 1996, as the FAA had imposed operating restrictions on Ecuadorian airlines operating to the USA for safety reasons. The same trick was used to provide an A310 for Ecuatoriana also and this ex-TEA France / Sudan Airways frame became PP-SFH in November 1997.

The livery for the new Ecuatoriana was a rather uninspiring version of VASP's own as VASP attempted to undertake some uniform marketing for its VASP Air System network. It doesn't seem that the new Ecuatoriana was particularly successful however the carrier's own operations were tied inextricably to that of its parent VASPs and as the 1990s moved on VASP's own position became more and more unstable.

A downturn in Ecuador’s economy however led to more financial strife in 2000 and Ecuatoriana shutdown for good after attempts to sell it failed. The DC-10 was broken up at Quito in 2004. Operations on its behalf were flown for a while by Lan Chile but Ecuatoriana never flew under its own name again and LAN Ecuador has since taken its position.

Ecuatoriana McDonnell Douglas DC-10-30 HC-BKO Aeroclassics 1:400 Scale Model Airliner

Already by 1998 VASP had been overtaken in the domestic market by TAM whilst its owned fleet was old and its newer aircraft subject to leasing agreements in US dollars. The devaluation of the Brasilian Real in 1999 was a major blow and VASP was forced to suspend all international operations. VASP desperately retrenched to stay in business which meant cutting loose its loss making subsidiary companies. In November in an attempt to force Ecuatoriana to pay overdue management fees VASP took back the A310, which was its primary source of revenue. Ecuatoriana stopped operations with its own aircraft in December. Lan Chile began to operate for Ecuatoriana on Ecuatoriana's old routes and started its own Ecuadorian subsidiary Lan Ecuador. Without backers or its own aircraft there was no way back for Ecuatoriana, though its a little unclear exactly when the company ceased existing legally.

References

1996, June. VASP Seeks Approval of Wet-Lease To Ecuatoriana. Aviation Week
2000, November. VASP Suspends Foreign Services. Flight Global