Lloyd Aéreo Boliviano S.A.M. (abbreviated LAB and internationally known as LAB Airlines), was the flag carrier and principal airline of Bolivia from 1925 until it ceased operations in 2010. Before its demise it was headquartered in Cochabamba and had its main hubs at Jorge Wilstermann International Airport and Viru Viru International Airport. Founded in September 1925, it was the second oldest airline in South America after Avianca and one of the oldest airlines in the world.
Lloyd Aéreo Boliviano (LAB) was founded by German immigrants in August 1925.[nb 1] On 24 September 1925, the airline launched its services between Cochabamba and Santa Cruz using a single Junkers F13 aircraft.
In July 1930, Lloyd Aéreo began to serve international routes, with scheduled flights between La Paz, where it was based then, and Corumbá, Brazil. On the grounds of a co-operation agreement with Syndicato Condor, an airline catering for the German minority in Brazil, LAB passengers could connect in Corumbá on a flight to Rio de Janeiro, and vice versa. Over the following years, more destinations in Brazil were added, so that Lloyd Aéreo became the second largest airline in South America at that time, only surpassed by Avianca from Colombia. In 1932, the Bolivian government seized all of LAB's planes and staff, so that they could be dispatched for military use during the Chaco War with Paraguay.
In May 1941, LAB was taken over by the government of Bolivia as the country's national airline and Panagra was granted a contract to administer it. In March 1960, Panagra held a 20% interest in LAB and the government of Bolivia was the major shareholder. At this time, Edmundo Gonzalez was the president of the airline and the fleet consisted of seven DC-3s, one DC-4 and six Boeing B-17s. With the Lockheed L-188 Electra joining the fleet in September 1968, LAB was in the position to offer non-stop international flights. A further improvement in comfort and travel times was achieved when Lloyd Aéreo acquired its first jet aircraft (of the Boeing 727 type) in 1970, allowing for the inauguration of flights to Central America and the United States.
At March 1990, the airline had 1,700 employees and was 99.98% owned by the government. By this time the network, which consisted of 21 domestic destinations and 15 international ones (Arica, Asunción, Belo Horizonte, Buenos Aires, Caracas, Cuzco, Lima, Manaus, Miami, Montevideo, Panama, Rio de Janeiro, Salta, Santiago and São Paulo), was served with two Boeing 707-320C, three Boeing 727-200s, two Boeing 727-100s, one Fokker F27-600 and one Fokker F27-200.
From 1994 onwards, Lloyd Aéreo Boliviano was encountering rising financial difficulties. As a consequence, the Bolivian government prepared the privatization of the airline and began to negotiate with potential buyers. On 19 October 1995, Brazilian airline VASP acquired 50 percent of the LAB shares. In an effort to cut costs, VASP aimed at a full merger of the two airlines, with a similar livery and a joint frequent flyer program as initial steps. At July 1998[update], 49% and 48.3% of the shares were held by VASP and the Bolivian government, respectively. In 2001, VASP sold its shares in LAB back to Bolivian investors, though, due to the ongoing monetary constraints. On the other hand, in 2004 LAB was awarded shares in Ecuatoriana de Aviación, the national airline of Ecuador at that time, as a compensation for outstanding debts, which led to a codeshare agreement between the two airlines.
From 2006, Lloyd Aéreo had to cut flights because it was in bad financial shape; leased long-haul aircraft (a random mix of Airbus A310, Boeing 757, Boeing 767 or Lockheed L-1011 TriStar at that time) could not be paid for anymore. On 30 March 2007, it was decided by the Bolivian government to shut down Lloyd Aéreo Boliviano, which meant that effective on 1 April, all flight operations were suspended. In October of the same year, Boliviana de Aviación was established as new national airline of Bolivia. LAB operated a limited number of charter flights during late 2007 and early 2008 on behalf of AeroSur, but has since fully gone out of business, with its airline license officially been revoked in 2010.
At that time, Lloyd Aéreo Boliviano offered mostly domestic flights, each of which with several stopovers (which was normal at a time where the range of airlines was very limited compared to today's situation). The route network had two hubs: In Cochabamba, the headquarters of the airline, and in Santa Cruz de la Sierra. Scheduled services were offered to the following destinations:
In Corumba, passengers could connect on Syndicato Condor flights to destinations within Brazil and even to Europe. Similarly, in La Paz, connecting flights to the Peruvian towns of Arequipa and Lima were offered in co-operation with Deutsche Lufthansa Peru. Like LAB, these airlines were aiming at the German minorities in the respective countries.
By then, Santa Cruz had replaced Cochabamba as the largest hub for Lloyd Aéreo Boliviano (now flag carrier of Bolivia), with another one having been opened at Trinidad Airport, and international routes being offered from La Paz Airport. The domestic network had grown to extensive size, covering most airports in the country (still relying on multiple-stopover flights). More international routes had been added, with LAB now also offering flights to Chile, Argentina and Peru. The following destinations were served on a scheduled basis in 1964, using Douglas DC-3, DC-6 or Boeing B-17G (the latter being military cargo aircraft converted from a bomber, which could also accommodate passengers).
During the 1970s, LAB's President Mario Patino Ayoroa developed the company's routes and made it an international player. The international network saw further expansion, most notably with the launch of scheduled flights to the United States.
At that time, the LAB network had been consolidated, appearing more or less in the shape it would retain until the 2000s. The largest Bolivian cities were linked with destinations all over South America, as well as in the United States (international flights usually had several stopovers). International flights as well as hub-to-hub flights were operated using Boeing 727 aircraft, whilst the Fokker F-27 and the similar Fairchild F-27 were deployed on the domestic network. From 1990, Lloyd Aéreo Boliviano moved its main hub in Santa Cruz de la Sierra from El Trompillo Airport to Viru Viru International Airport.
During the 2000s, LAB offered scheduled flights to the following destinations:
Over the years of its existence, Lloyd Aéreo Boliviano operated the following aircraft types:
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