PLUNA was Uruguay's flag carrier — it lost $300M and was liquidated in a week

PLUNA was founded in 1936 as Uruguay's flag carrier, operating for more than seven decades as a small but respected airline serving Latin America. In 1995 the government privatised the airline, and in 2007 it sold 75% of shares to Leadgate Investment, a subsidiary of LARAH, which committed to inject $177 million. The new owner ordered 7 Bombardier CRJ-900s worth $261 million, expanding the fleet to 13 aircraft — the largest in PLUNA's history.

The expansion was not sustainable. The private consortium accumulated total losses of $300 million. PLUNA was heavily exposed to Argentina, which accounted for 21% of its operations — when Argentina renationalised Aerolíneas Argentinas in 2008 and adopted protectionist aviation policies, PLUNA lost access to its most important market. A Brazilian economic slowdown further reduced demand. By early 2012, the airline was losing $18 million in the eight months ending February alone.

In June 2012, Leadgate transferred its 75% stake back to the Uruguayan government, abandoning the airline. CEO Matías Campiani had warned of possible collapse weeks earlier. On July 3, employees went on strike. Two days later, on July 5, 2012, the government suspended operations indefinitely and ordered liquidation. The 7 CRJ-900s were eventually sold to Cosmo Airlines for $137 million.

The collapse put about 635 employees out of work and ended the 76-year history of Uruguay's flag carrier. The case became a cautionary tale about the dangers of privatising a national airline without ensuring the private partner had the capital and commitment to see it through a regional downturn.