PLUNA

Primeras Líneas Uruguayas de Navegación Aérea, better known as PLUNA, was a historic Uruguayan national flag airline that operated for 75 years. Its main base was the Carrasco International Airport.

Boeing 767-300ER CX-PUB, landing in Madrid-Barajas (February 2007)

CX-CRD Canadair from PLUNA Uruguayan Air Lines S. A (Denomination given during privatization)

History

Foundation

Douglas C-47B CX-BDB of First Uruguayan Air Navigation Lines

On November 20, 1936, the brothers Jorge and Alberto Vaeza founded, with the financial and technical support of the then British ambassador to Uruguay Eugen Millington-Drake, the first Uruguayan navigation airline. Hence its name of First Uruguayan Air Navigation Lines.

In its beginnings, the newly created company did not have a commercial premises for the attention and sale of tickets, so Hermann Stahl, owner of the Oro del Rhine confectionery, gave them a couple of tables in the lounge on the street Colonia and Convención to carry out the sales task there. While the passengers waited to be attended, they were offered a cafeteria service.

Its first services were to the interior of the country, with only two de Havilland D.H. 90 - "Churrinche" and "San Alberto" - Salto being the first regular destination carried out in November 1936. At the beginning of the forties, two Douglas DC-2s from Panair Do Brasil were acquired. These aircraft registered CX-AEF and CX-AEG operated the Montevideo/Paysandú/Salto route,

On December 5, 1940, Law No. 9,940 granted state subsidies to the existing national airlines: PLUNA, Compañía Aeronáutica Uruguaya S.A. and Expreso del Plata Limitada. Simultaneously, the State would have a delegate on the boards of the three companies. Shortly after, in 1944, Law No. 10,535 would create a mixed economic company between the State and the limited company Primeras Líneas Uruguayas de Navegación Aérea, called PLUNA SEM.. Initially, the State would have 83.3% of the company. But shortly after, Law No. 10,995 would grant a greater state participation in PLUNA SEM, with the State now controlling 94.4% of the total.

Nationalization

Finally, on December 12, 1951, through Law No. 11,740, the mixed economic company was dissolved, and the company Primeras Líneas Uruguayas de Navegación Aérea was approved to pass into the hands of the State, becoming an autonomous Entity, through the non-state public enterprise system. Being now, the first public air navigation company.

How main tasks would be the operation of national, inter-American and intercontinental passenger transport airlines. As well as mail and logistics. Also having an important role, in the diffusion abroad in relation to institutionalizing industries, arts, culture and tourism, at that time booming. Fostering cultural and economic exchange with the countries in which it provides services As the country and the region evolved, PLUNA expanded its routes and, in December 1947, made its first regular flight to Brazil, linking the cities of Montevideo and Punta from the East with Porto Alegre, later extending this route to São Paulo. In 1955 it inaugurated its flight to Buenos Aires and, in May 1981, the intercontinental operation to Madrid.

In 1951, four DH 114 Herons were acquired to complement the Douglas DC-3s. The service of this small English four-engine plane with PLUNA was not very effective or successful, especially due to problems with the propellers, and in 1957 it was decided to sell it to the British company Eagle Aircraft Corp. The more robust DC-3s were used by the company until 1971, when the last four aircraft, CX-AFE "Salto", CX-AIJ"Paysandú", CX- AQC and the CX-AGD"Rivera" They will be sold to the Uruguayan Air Force receiving these aircraft the respective registrations FAU-522, FAU-523 and FAU-524. The CX-AGD "Rivera" it was used only as a source of spare parts. These aircraft still had a long life ahead of them in service with the FAU and were used by the Uruguayan Military Air Transport until 1988.

Vickers Viscount 769 CX-AQO from PLUNA in the former Carrasco Airport.

In July 1956, the purchase of the Vickers Viscount was authorized, and the first unit, the Viscount 769D CX-AQN(C/N 321) arrived in the country on June 24, 1958. The Vickers inaugurated a whole new era in PLUNA, revolutionizing the way of operating the airline in all its sense. In those 60s, the Viscounts of PLUNA and the Constellations of Compañía Aeronáutica Uruguaya S.A. (CAUSA) were seen arriving at Buenos Aires Jorge Newbery Airport. Two other 769D models (CX-AQO and CX-AQP) followed the first aircraft, entering service with PLUNA shortly thereafter. These three Viscounts were purchased new by PLUNA directly from the Vickers factory. Subsequently, it acquired two Viscount 745D models (CX-BHA and CX-BHB) with Alitalia and finally with the Brazilian VASP three large-capacity Viscount 827 models (CX-BIY, CX-BIZ and CX-BJA).

Privatization

Boeing 737-2A3

In 1991, Article 6 of Law No. 16,211 empowered PLUNA to associate with private capital in order to operate its passenger, mail and cargo airlines. The law established that the association should be done through participation in commercial companies, in which the State participates as a partner and its function, through the autonomous entity, being the control, development and operation of the airline.

On the basis of said law, in June 1995, Primeras Líneas Uruguayas de Navegación Aérea associated with Varig, creating a new company called Pluna Líneas Aéreas Uruguayas S.A. The capital of the new company was distributed between Varig (49%), First Air Navigation Lines (48%), Víctor and Santiago Mesa (2%) and PLUNA officials (1%). By contract, management was left to Varig. The board of directors of Nueva Pluna Líneas Aéreas Uruguayas S.A would be made up of seven members, four members appointed by Varig and three by the Executive Power. This association ended up yielding negative results for PLUNA, due to poor management and Varig's financial debacle.

From 2000 to 2007, the company undertook a process of expanding its fleet, operating regional routes with Boeing 757-200, Boeing 737-200 and a Boeing 737-300. PLUNA added to this fleet a Boeing 767-300ER with greater comfort for passengers and great cargo capacity, in order to cover intercontinental routes. In some cases the 757-200 was used to cover the MVD-GIG route.

From the expiration of the management contract with Varig, the Uruguayan government began to search for new partners for the company, which concluded on January 4, 2007 in the association with Leadgate Investment, which, through of Latin American Regional Aviation Holding Corporation, remained as majority shareholder (75% of the capital). Leadgate took control of the company on July 1, 2007. Based on the contract signed, the Uruguayan State had to contribute some 28 million dollars to leave the company with positive equity. In addition, it came out as guarantor of the purchase of the new aircraft.

CRJ900 CX-CRC by PLUNA in Buenos Aires, September 2008.

At the end of 2007, PLUNA signed an agreement with American Airlines through which a new way of traveling to the United States was opened to PLUNA passengers from the entire Southern Cone, connecting via Montevideo. During 2008 the fleet was renewed, completing 7 Bombardier CRJ 900 regional jets, with 90 seats.

In July 2008 PLUNA received notification of the final approval of the IOSA operational safety audit, by IATA, the International Air Transport Association. The IOSA audit (IATA Operational Safety Audit, for its acronym in English) evaluates the Safety Control Systems of airlines. The certification allowed progress in agreements with other airlines.

In August 2008, PLUNA formalized a strategic alliance with the Spanish company Iberia. The companies reached a "codeshare" agreement, by which they can market regional and intercontinental flights under their respective codes. The agreement with Iberia made it possible to expand the offer of European destinations to PLUNA passengers, since they involved Madrid, Barcelona, Valencia, Seville, Vigo, Tenerife and Las Palmas de Gran Canaria in Spain. In the rest of Europe the agreement covers the cities of Frankfurt am Main, Rome, London, Paris and Milan. After this agreement, PLUNA announced the suspension of its own flights to Madrid. As of September 2008, PLUNA concentrated its operations exclusively at the regional level. According to information from the company, the operations of long-haul flights were suspended until market conditions and those of the company allowed it.

An agreement was also reached with Emirates SkyCargo to transport cargo to countries in the Middle and Far East with the company's six weekly flights between Sao Paulo and Dubai.

In 2009 PLUNA entered into an agreement with the Chilean company Sky Airline with the aim of advancing in the development of the "smart charging" business. The agreement implies PLUNA the best use of the cargo business, while the Chilean airline makes available its network of commercial agents throughout the world, its operational experience and its technological infrastructure to take advantage of the spaces available for cargo on PLUNA flights.. However, shortly after they started, these flights between Punta Arenas and Santiago were suspended.

In May 2009, the purchase of 60% of the shares of the Argentine company Aerovip by the majority shareholder of PLUNA, Leadgate, was announced. In a first stage, the company will cover the Buenos Aires-Montevideo section and carry out charter flights. Subsequently, the cabotage route diagram will be defined, added to that of Punta del Este, to cover which Aerovip also has the agreed permits.

After several years of million-dollar losses, in 2009 it closed with a positive operating result of one million dollars and the 2009 and 2010 seasons were the best in the history of the airline, with positive operating results of 5 and 6 million dollars. dollars respectively. For 2010, the airline announced to continue its growth process. For that, it incorporated 3 new CRJ 900 NextGen and projects a capitalization of 20 million dollars, in which new investors could participate.

In April 2010, the sale of 33.33% of the shares of Latin American Regional Aviation Holding Corporation (LARAH) to the Canadian investment fund Jazz Air Income Fund was announced. Jazz Air Income Fund owns Jazz Air LP. The transaction involved a disbursement of USD 15 million, conditional on compliance with certain actions by the Uruguayan government, among which was the disbursement of another USD 5 million.

On October 4, 2011, through a press release, the airline announced the start of regular flights within Chile in the first quarter of 2012, from the city of Santiago to Antofagasta, Calama (north) and Concepción (south).

Case of operations

Office in Aeroparque, Buenos Aires taken by dismissed employees asking for their compensation.

On Thursday, July 5, 2012, through a press release, the airline's board reported that PLUNA was indefinitely suspending its operations due to the company's economic-financial situation after the abrupt departure of the private investor, Leadgate Investment. On July 9, the Executive Branch sent to Parliament a bill that would liquidate PLUNA due to its situation of "insufficiency in assets", the airlines inability to access liquidity and the lack of financing, leaving Uruguay without a flag carrier. Their planes were left at the Carrasco Airport.

The service with the largest number of daily frequencies covered by PLUNA was the Montevideo-Buenos Aires air shuttle. Which would be partially covered by BQB Líneas Aéreas and Argentina Sol Líneas Aéreas.

The cessation of operations at the time generated a significant social impact and discomfort among thousands of passengers. Many of them at the time could not travel, return their tickets. In the consumer defense offices of countries such as Uruguay, Chile or Brazil, hundreds of claims were registered by affected users. The National Consumer Service of Chile filed a lawsuit against PLUNA S.A due to the lack of solutions for those affected. It is estimated that the number of users affected by the closure of the airline exceeds 70,000.

After the bankruptcy of the airline, Aerolíneas Argentinas and Austral increased flight frequencies to meet demand. The Uruguayan government announced that if the creation of a new flag carrier does not materialize, the most important air bridge linking Montevideo with Buenos Aires would be taken over by Aerolíneas Argentinas.

On Monday, October 1, 2012, the auction of seven PLUNA Bombardier CRJ900 aircraft was held, which were awarded for 137 million dollars to the Spanish company Cosmo Líneas Aéreas SL. This auction would culminate in various irregularities that would lead to the prosecution and resignation of the Minister of Economy and Finance, as well as the President of the Banco de la República. Cosmo's representative and the auctioneer would also be prosecuted.

New airline

The former Pluna workers created the new Alas Uruguay airline.

In 2012, despite the insistence of former Pluna employees to redound to the company, the possibility of PLUNA becoming a cooperative made up of former employees and financially supported by the Uruguayan State began to be disseminated in different media outlets..

In May 2013, the name of the new flag airline was announced, founded by former Pluna workers, the new company - and workers' cooperative - would be called Alas Uruguay, and would start operations in the last quarter of 2013. Said company began operations on March 11, 2015 and went bankrupt on October 25, 2016.

Former Destinations

PLUNA operated a network of destinations to cities in North America, South America and Europe from its operations center at the Carrasco International Airport in Montevideo:

Countries	Destinations	Airports
Argentina	Buenos Aires	Aeroparque Jorge Newbery
		International Airport Minister Pistarini
	Córdoba	International Airport Engineer Ambrosio Taravella
BrazilBrazil	Belo Horizonte	International Airport Tancredo Neves
	Brasilia	International Airport President Juscelino Kubitschek
	Campinas	International Airport of Campinas
	Curitiba	Afonso Pena International Airport
	Florianópolis	Hercílio Luz International Airport
	Foz do Iguaçu	International Airport of Foz do Iguaçu
	Porto Alegre	International Airport Salgado Filho
	Rio de Janeiro	Galeão International Airport
	São Paulo	Sao Paulo-Guarulhos International Airport
ChileChile	Concepción	International Airport Carriel Sur
	Punta Arenas	International Airport President Carlos Ibáñez del Campo
	Santiago de Chile	Arturo Merino Benítez International Airport
SpainSpain	Madrid	Adolfo Suárez Madrid-Barajas Airport
United States	Miami	Miami International Airport
Uruguay Uruguay	Montevideo	Carrasco International Airport (HUB)
	Punta del Este	International Airport of Laguna del Sauce
NetherlandsNetherlands	Amsterdam	Amsterdam-Schiphol Airport
Paraguay Paraguay	Assumption	Silvio Pettirossi International Airport

International flights

Historical fleet

Accidents and incidents

• On October 9, 1962, a Douglas DC-3 (C-47), registered CX-AGE, from PLUNA, crashed into a test flight due to the unharmed arming of alloy commands after performing maintenance tasks on the aircraft.

The aircraft had entered the workshop for overhaul, which is a general overhaul after having completed another 5,000 flight hours. Once the work was finished, a test flight was arranged. In addition to the navigators and technical personnel who had worked, that day a technical inspector from the General Directorate of Civil Aeronautics, a unit in charge of issuing the airworthiness certificates necessary for an aircraft to return to the market, boarded. Takeoff took place at 3:05 p.m. on the longest runway at Carrasco Airport.

The ship rose and turbulence led the commander to correct the lower position of the right wing, where the tragedy began. Inadvertently in the overhaul, due to a maintenance error, since although the aileron control cable connections were correct, from the control columns to the connection triangles, the connection of said triangles to the cables that continue had been inverted up to the differential cross of the wing, which caused the inverted operation of the entire system. This led to the fact that when the pilot attempted to straighten the wing droop, he dipped further until he touched the ground. The right wing detached, fuel spilled and the plane crashed, creating a huge fire that took firefighters three hours to extinguish. This instantly killed the DC-3 and its crew, made up of ten people.

Despite this accident, PLUNA has never had an accident on a commercial flight, since the CX-AGE flight was not a regular flight for the airline but a test flight after a review. On November 20, 2021, a monolith was inaugurated in tribute to the victims of this accident at the "Coronel (Aviador) Jaime Meregalli" Aeronautical Museum. The monument is next to a former PLUNA Douglas DC-3 (CX-BDB) similar to the one that crashed and contains two plaques that had been placed in the old PLUNA hangar a year after the tragedy.

• On May 11, 1976 a Vickers Viscount (CX-AQO) covering the Montevideo-Buenos Aires route left the track of the Jorge Newberry Aeropark when landing. There were no casualties among their 57 occupants (5 crew members and 52 passengers), but the plane was destroyed.

Competitors

The airline PLUNA competed in South America with the following companies:

• Airlines Argentinas
• Sun Air Lines
• Gol Linhas Aircraft
• TAM Linhas Airlines
• LAN Airlines
• Sky Airline
• BQB Airline

Aircraft in stock

There are currently four historic PLUNA aircraft in existence in Uruguay:

• CX-BDB: Douglas DC-3 (C-47) exhibited at the entrance of the "Coronel (Aviator) Jaime Meregalli Air Museum.

• CX-BJA: Vickers Viscount, the only 827 Series in existence in the world, in exhibition at the "Coronel (Aviator) Jaime Meregalli Air Museum, its interior was completely restored by the group "Memories of PLUNA" and can be visited within the activities of the Museum.
• CX-BOP: Boeing 737-200 acquired by the International College of Punta del Este, adapted as a classroom and laboratory for its students.
• CX-BON: Boeing 737-200 acquired by a private individual and transferred to Puntas de Valdez, town of the Department of San José. It is currently unarmed without apparent destiny.