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7JetSet7 Code: PCP
Status: Currently Not Operational
Country: CHILE
Employees 47
Web: aerolineaprincipal.cl
Email: d.vera@aerolineaprincipal.cl
Telephone: +56 2 481-4307
Fax: +56 2 481-5439

Click below for data links:

Founded in 2003. In 2006 a group of Chilean businessmen hired Futura International Airways (FUA) to re-organize the company. It started operations in 2007 as Aerolinea Principal Chile (PCP). Domestic, regional, & international, charter, passenger & cargo, jet airplane services.

San Sebastian 2839
Of. 410, Las Condes
Santiago, Chile

Chile (Republic of Chile) was established in 1818, covers an area of 756,945 sq km, its population is 15 million, its capital city is Santiago de Chile, and its official language is Spanish.

September 2003: Established as a charter airline.

April 2008: Aerolinea Principal Chile (PCP) offers ad hoc and contract charters to groups, sports teams, and tour operators throughout Latin America, with assistance from Futura International Airways (FUA), which also provides 737s on a wet-lease basis.

Parent organization/shareholders: Grupo Musiet (In the 1990s the Musiet family owned now defunct National Airlines.

(IATA) Code: 5P. (ICAO) Code: PCP - (Callsign - PRINCIPAL).

Main Base: Santiago International Arturo Merino Benitez Airport (SCL).

Domestic Destinations: Arica; Antofagasta; Calama; Copiapo; Iquique; & Santiago.

International Destination: Cordoba (Argentina).

December 2008: After former partner Futura International Airways (FUA) ceased operations last fall, Aerolinea Principal Chile (PCP) resumed operations as Chile's sole non-scheduled airline. See attached photo - - "PCP-737-236-DEC08, which shows 737-236 (22030, CC-CZO), ex-Air Comet (APZ) Chile, which is flying charter flights from Santiago de Chile to Florianapolis (Brazil), plus to Antofagasta plus Punta Arenas (Chile) and to Temuco, Cordoba, Iguazu, Buenos Aires and Ushuaia in Argentina plus Montevideo, Uruguay and other Brazil cities including Foz do Iguacu.

June 2009: The airline received approval for scheduled services.

1 A340-300 HiFly (LXA) wet-leased for 2010 FIFA World Soccer Cup in South Africa.

October 2009: Changes name to "PAL Principal Airlines" - - SEE NEW LIVERY IN ATTACHED PHOTO - - "PCP-737-236-2009-10."

July 2010: 737-322 (24669, CC-ACE), ex-United Airlines (UAL), ex-(N394UA), delivery.

February 2011: A330-343E (1097, EC-LEQ) Iberworld (IBW) wet-leased for European winter season.

October 2011: (LAN) Airlines said it reached a settlement to pay Chilean airline, PAL Principal Airlines (PCP) $5 million regarding the pending legal proceeding before the Chilean antitrust tribunal (TDLC) and their appeal before the Chilean Supreme Court in connection with the merger process between (LAN) and (TAM) (TPR). The companies believe the merger is still on track to conclude toward the end of the first quarter 2012.

March 2012: Chilean airlines saw a +16% increase in international passenger traffic and a +15.8% growth in domestic traffic in January, logging a record figure of 1.4 million boarding passengers, its all-time best single month on record.

Data released by the Junta de Aeronáutica Civil shows (LAN) Airlines was the market leader in international traffic, with a 49.5% market share. (LAN) Peru (LPU) was second, with a 5.7% market share. Sky Airline (SSV) was third with a market share of 4.9%. In the domestic market, (LAN) Express (LDE) was first with a 50.3% market share. (LAN) Airlines had a 28.1% market share and Sky Airline (SSV) had a 17.3% market share. PAL Airlines (PCP) secured a 3.8% market share. International cargo traffic decreased -4.7%, while domestic cargo grew +5%.

According to reports in the local newspaper "El Mercúrio," the traffic increases are the result of a competitive market, improved financial situations among Chileans, and the introduction of credit options to purchase airline tickets and travel packages. A decline of the USA dollar against the Chilean peso also helped boost international traffic.

PAL Principal Airlines (PCP) plans to complete its rollover from 737-200s to 737-300s during the Chilean winter season. It currently serves Antofagasta Cerro Moreno International airport (ANF), Calama El Loa airport (CJC), Copiagó Desierto de Atacama airport (CPO) and Iquique Diego Aracena International airport (IQQ) from Santiago de Chile Arturo Merino Benítez International airport (SCL) and uses two 737-300s and a 737-200 for its scheduled services with two additional 737-200s still in the fleet.

May 2012: (PAL) Airlines (PCP) has taken legal action against the Chilean government asking for compensation because two foreign carriers have been allowed to operate on a wet-lease basis on behalf of Servicios Aéreos Río Baker. West Air Sweden operates a CRJ(F) freighter on behalf of Rio Baker which mainly serves the country's growing mining industry, while Global Air (DMJ) operates 737-200 on its behalf. The only foreign carrier currently operating scheduled services in Chile is PLUNA (PLU).

March 2013: Measuring almost 4,500 km in length, Chile is well suited for the development of domestic flying. As the country’s leading carrier, (LAN) Airlines is also the largest player in the domestic market, offering 73% of weekly seats across its network of 13 destinations. While the airline withdrew the twice-daily service to Valdivia in the south of the country over the course of last year, its total capacity in April 2013 is +16% larger than a year before. Santiago’s second-largest domestic operator, Sky Airline (SSV), saw the most dramatic capacity growth in the last year, as it increased its weekly seat offering by +33%. Again, its growth came from capacity expansion in existing markets from Santiago with Calama and Puerto Montt noting two- and four-fold frequency growth in April 2013 compared to the previous year. Only one route was pulled by the airline from its Santiago network last year, as it discontinued thrice-weekly schedule to El Salvador, a declining mining centre in the Atacama Desert.

The northern Chilean port city and an important mining centre, Antofagasta, is the busiest domestic destination from Santiago, served with a total of 119 weekly flights. Two-thirds of the seat supply to this affluent region (annual (GDP) per capita is similar to that of the UK) are commanded by (LAN). The airline competes against Sky Airline (SSV) on nine of the top 10 domestic routes from Santiago, the only exception being Punta Arenas, to which it operates 18 weekly flights in monopoly conditions. (PAL) Airlines (PCP), the smallest domestic carrier from Santiago (4% seat capacity in April 2013), provides further competition on four of the top 10 routes. Antofagasta (6 weekly flights), Calama (4), Iquique (8) and Copiapo (3) are the only domestic routes offered by the airline from Santiago.


July 2013: PAL Airlines (PCP) will begin 2X-weekly, Santiago - Lima service in early 2014.

September 2013: 737-3B7 (24411, CC-AKS), ex-(N529AU), (BCI) Aircraft Leasing leased.

October 2013: SEE ATTACHED - - "PCP-2013-10 - CHARTER OPS."

May 2014: (PAL) Airlines ((IATA) Code: 5P, based at Santiago de Chile International) (PCP) has had its Air Operators Certificate (AOC) suspended by Chile's civil aviation regulator (Dirección General de Aeronáutica Civil - (DGAC)) for "breaching technical requirements" that could "endanger safety."

Following an audit of (PCP) and its facilities, the (DGAC) said (PCP)'s failure to satisfy unspecified technical requirements, as laid down in its (AOC), could put its safety and security at risk if they are not resolved. "Therefore, citizens are informed that all air operations of this company are suspended until it demonstrates compliance with the technical requirements of aviation regulations," the (DGAC) said.

For its part, (PCP), which had operated two 737-200s and three 737-300s on charter flights throughout Chile, said it is committed to resolving the issues as soon as possible.

August 2014: (PAL) Airlines ((IATA) Code: 5P, based at Santiago de Chile International) (PCP) has suspended operations after the Chilean Civil Aviation Authority (Dirección General de Aeronáutica Civil ( DGAC)) grounded it on fiduciary grounds. According to "AeroLatinNews," a (DGAC) audit of (PCP)'s accounts showed the airline had defaulted in its payment of passenger embarkation taxes as well as aeronautical charges.

This is the second time the (DGAC) has forced (PCP) to suspend operations within the space of six months. In May, the regulator suspended (PCP)'s Air Operators Certificate (AOC) for 10 days for "breaching technical requirements" that could "endanger safety."

Prior to the suspension, (PCP) had operated two 737-300s on charter flights throughout Chile.

PAL Airlines (PCP) management has decided to abandon its mining charter operations in favor of holiday flights as part of plans to revive the ailing airline's waning fortunes.

Chile's "El Mercurio" newspaper says (PCP)'s decision to put its traditional mining charter flights on hiatus for the time being was symptomatic of the sluggish Chilean economy. Management also blamed the government's policy of granting foreign carriers domestic traffic rights (cabotage) with local carriers seeing little, if any, reciprocity in kind.

With debts mounting to over >USD10 million, (PAL) has also decided to open up its Maintenance Repair & Overhaul (MRO) base to other airlines thereby diversifying its income source.

In a more drastic act, management has also studied the possibility of selling various assets (among them the airline's Air Operators Certificate (AOC), the brand and its (MRO) facility) to other interested parties such as One Airlines ((ICAO) Code: ONS, based at Santiago de Chile International) in a bid to raise much needed cash.

(PAL) was recently forced to at least temporarily suspend operations after a Chilean civil aviation authority (Dirección General de Aeronáutica Civil - (DGAC)) audit of its finances showed it had defaulted in its payment of passenger embarkation taxes as well as aeronautical charges.

September 2014: (PAL) Airlines (PCP) has announced the indefinite suspension of its operations to allow it time to resolve what management has termed "a complex financial quagmire." (PCP) (CEO), Fernando Musiet told Chile's "iario Financiero" that despite the airline board's decision to begin liquidating assets, (PCP) would not file for bankruptcy.

"We will suspend operations until we see that there is a chance that we can return to profitability, which will be discussed in due course," he said.

Airline executives added that (PCP) will likely strip itself of all unnecessary business assets leaving only its Maintenance Repair & Overhaul (MRO), spare part supply, and catering division. Its fleet of airplanes, including two 737-200s and two 737-300s may also be returned to their lessors.

Musiet attributed the company's financial woes to unfavorable market conditions, chief among them a slowdown in (PCP)'s bread-and-butter market, the mining sector. In addition, the (CEO) also bemoaned the weakening Chilean Peso which, he said, had driven up fuel costs.

In mid-August, the Chilean civil aviation authority (Dirección General de Aeronáutica Civil - (DGAC)) grounded the carrier over unremitted passenger embarkation taxes as well as aeronautical charges said to amount to over >CLP160 million/USD 271,000).

Management says it has already met with creditors adding that an "understanding" has been reached with each of them concerning (PCP)'s current situation and future plans.

ACCORDING TO AIRLINER WORLD IN http://www.airlinerworld.com


Click below for photos:
PCP-737-236 - 2014-08

September 2014:

1 737-2K9 (JT8D) (23404, CC-ACD), EX-(C9-BAK), 2010-08.

1 737-200 (JT8D) (CC-CRP). 120Y.

2 737-236 (JT8D-15A) (68-21804, CC-CZK; 693-22030, /80 CC-CZO - - SEE PHOTO - - "PCP-737-236-2008-12"), EX-(LAN)/AIR COMET (APZ) CHILE/(BAB). 120Y.

1 737-3B7 (CFM56-3C1) (24411, CC-AKS), EX-(N529AU), (BCI) AIRCRAFT LEASING LSD 2013-09.

0 737-300 (CFM56-3), (FUA) WET-LSD. RTND. 146Y.

1 737-322 (CFM56-3C1) (1907-24669, /90 CC-ACE), EX-(UAL), EX-(N394UA), 8F, 126Y.

0 737-400 (CFM56-3), (FUA) WET-LSD. RTND. 170Y.

0 737-800 (CFM56-7B), (FUA) WET-LSD. RTND. 189Y.

0 757-200.

0 A330-343E (1097, EC-LEQ - SEE PHOTO - - "PCP-A330-343E-2011-02"), IBERWORLD (IBW) WET-LSD FOR EUROPEAN WINTER SEASON 2011-02.






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