Bolivian airline suspended for breaching insurance rules

Region faces downturn in motor insurance • Paraguay • Venezuela • Central America • Caribbean

Bolivia’s aviation authorities have suspended all flights by the ailing former flag airline Lloyd Aero Boliviano (LAB). On January 23, the country’s Transport Superintendent accused the airline of failing to have the necessary insurance policies in place to allow it to continue flying. According to the authorities, the airline does not have an insurance policy in place to protect passengers’ money if it cannot fulfil its contractual obligations. The decision to suspend all flights by LAB ended the airline’s efforts to rebuild its troubled financial situation.