International routes proved to be rather long trips: there were jets already in operation when Ecuatoriana began flying (before the Boeing 707 made its first flight), but they were predominantly used by European airlines.

Likewise, routes from Quito and Guayaquil to Santiago de Chile included stopovers in Lima, Peru.

Through the Defence Ministry, the Ecuadorian Air Force bought two refurbished Boeing 707s for the airline from Israeli Aircraft Industries in a deal worth US$4,700,000 (equivalent to $29,037,247 in 2023) million.

Having jet equipment meant that long flights with stopovers were no longer necessary, and non-stop routes were opened all over South America and to other North American cities.

Rumors that government officials flew their family members for free on Ecuatoriana hurt the airline's reputation.

Faced with these problems, as well as competition from other carriers such as the privately owned Ecuadorian carrier SAETA, American Airlines (which had assumed Eastern Air Lines' Latin America routes in 1990), and Continental Airlines, which began serving Ecuador from its Houston hub in 1991, Ecuatoriana ceased operations.

Ecuatoriana was forced to rely on competitors TAME and SAETA to fly its North and South American routes, after a deal with Costa Rican LACSA broke down.

[8] After a lengthy privatization process, with the participation of nine consortiums that included ACES, Air France, British Aerospace, Carnival Airlines, Challenge Air Cargo, Continental Airlines, Aerogal and TACA, the consortium led by Brazilian airline VASP (and local investor Juan Eljuri) won the bid through the Guayaquil and Quito stock exchanges, buying 50.1 percent in August 1995 (at $1500 per stock), with a five-year business plan and an effective injection of $10 million during the stock bidding.

[10] That year, Ecuatoriana was caught up in the aftermath of the collapse of Ecuador's economy and once again found itself in financial trouble, and VASP decided to sell its part of the airline, with both Aero Continente and Lan Chile being bidders at that time.

[12] Following the rejection of Aero Continente's bid and the suspension of Ecuatoriana's air operator certificate, Ecuador's civil aviation authority cleared Lan Chile to start up a subsidiary named Lan Ecuador to fly many international routes previously operated by Ecuatoriana.