Grounded Peruvian airline Aero Continente has transferred ownership to its employees in a bid to obtain an insurance policy to restart flights, said a report.
Flights could resume under the name Nuevo Continente, transportation minister Jose Ortiz said.
It is understood that UK insurer Global Aerospace refused to renew Aero Continente's policy after US authorities blacklisted the airline's founder, Fernando Zevallos, under the Foreign Narcotics Kingpin Determination Act.
The Act prohibits US citizens or companies from conducting business with those identified on the list. Global Aerospace is partially owned by US interests
Houlder Insurance Services joint managing director Bob Beattie confirmed the Lloyd's broker was in discussions to place the Aero Continente risk.
“We are currently in discussions with underwriters. There is nothing firm at the moment as Aero Continente is undergoing a management buy-out.”
