Latin American Wings suspended its operations, which it says is a temporary measure. "We recognize that this measure will have an impact on some of our passengers and we deeply regret the inconvenience that will be generated," the carrier said.

In a statement signed by the general manager, Andrés Dulcinelli, the airline blamed "the price war imposed by large companies in the aviation industry" as the cause for the reorganization and the search for new capital.

"This will allow us to continue to operate under a new business model," he added.

The company explained that this temporary suspension has resulted in the cancellation of all scheduled flights.

The suspension follows a week after LAW had to temporarily suspend its operations in Peru due to lack of on-time service.