Beginnings in 1996.
Elmer J. Faucett had been sent to
Peru as a representative of the
Curtiss Export Company, arriving in the country from the
United States in 1920. With an initial investment of
£2,500, In 1937, the airline absorbed
Compañía de Aviación Peruana SA from
Panagra. The cargo-only airline
Aeronaves del Peru became Faucett's biggest shareholder in 1982.
1990s: Decline and final years The 1990s
economic liberalization under
Alberto Fujimori, after years of economic and political chaos (as well
as a violent Maoist insurgency), brought a series of measures aimed at the privatization and deregulation of the airline market. A series of short-lived airlines sprung up during this decade (in the style of Russian
Babyflots), state-owned
Aeroperú was partly sold to Mexican investors and the rise of low-fare
Aero Continente as the biggest domestic airline, contributed to the slow decline of Faucett. A series of high-profile accidents, especially
Faucett Perú Flight 251 and
Aeroperú Flight 603 (both in 1996) affected the safety reputation of the Peruvian airline industry, with the
US Embassy in Lima banning their employees from flying on Aero Continente and, more broadly, advising caution to US citizens flying on Peru's airlines. In the end, problems with the economic-financial structure of the airline (with debts even with
CORPAC for airport services), forced it to cease operations on 3 December 1997. Despite claiming that the 45-day closure would be temporary until government approval, all 1,250 employees were dismissed. Faucett incurred over US$1 million in debt. By 1998, the former directors and employees were engaged in legal battles over labor and management issues, as well as accusations over bankrupting the company. The airline was liquidated in 1999. == Destinations==