[8] On 5 July 2012,[9] only two days after the carrier's employees went on strike amid mounting financial difficulties,[10][11] the Uruguayan government decided to close the airline down and liquidate it.

[14] It was set up by Jorge and Alberto Márquez Vaesa, two brothers who had obtained the necessary financial and technical support through the ambassador of the United Kingdom to Uruguay at the time, Sir Eugen Millington-Drake.

It was then decided on "PLUNA", an acronym for Primeras Líneas Uruguayas de Navegación Aérea (English: First Uruguayan Air Navigation Lines).

[14] Following the outbreak of World War II, PLUNA was forced to suspend operations between 1942, and 1944, due to the lack of spare parts.

In the 1980s, PLUNA began flying to Madrid, Asunción, Rio de Janeiro and Santiago, but services to JFK and Miami were suspended.

At this time the fleet consisted of six Boeing 737-200 Advanced and one McDonnell Douglas DC-10-30 to serve a network that included Asunción, Buenos Aires, Cordoba, Florianópolis, Madrid, Montevideo, Punta del Este, Rio de Janeiro, Rosario, Salvador, Santiago and São Paulo.

On 4 January 2007, the Government of Uruguay started negotiations to sell 75% of it shares to a private consortium of investors from Germany, United States, Uruguay and Argentina called Leadgate Investment, a subsidiary of Latin American Regional Aviation Holding Corporation (LARAH),[20][failed verification] that committed to inject US$177 million in the company.

[21][22] In July the same year, the government awarded 75% of PLUNA's stock to LARAH,[23] and the acquisition of seven Bombardier CRJ-900s in a deal worth US$261 million was announced.

[25] The first of seven brand new CRJ900s that would be incorporated into the fleet during 2008 arrived in March that year; these new aircraft permitted increasing frequencies to existing routes, as well as expanding services to new destinations.

[27] The move gave this holding an indirect control of 25% of the Uruguayan flag carrier, as LARAH had a participation of 75% into PLUNA at that time; the Government of Uruguay held the balance.

In early June 2012 (2012-06), PLUNA's then CEO, Matías Campiani, disclosed that the airline might face collapse amid a financial distress that led to a loss of US$18 million for the eight months ending in February the same year, partly due to the protectionism of the government of Argentina —where the carrier concentrated 21% of its operations— following the renationalisation of Aerolíneas Argentinas in 2008, and partly due to the slowdown of the Brazilian economy in the preceding months.

[33] Despite being initially disclosed that Jazz Air was not interested in taking over the entire 75% stock,[34][35] and that it was later informed that the Canadian airline was evaluating the acquisition,[36][37] the government suspended PLUNA's operations on 5 July 2012 (2012-07-05)—following a strike that started two days earlier, after failing to find new investors for the company.

[52] The carrier also operated the following aircraft types throughout its history:[52][53] PLUNA had only one fatal accident with the loss of ten crew members, the Aviation Safety Network records 3 hull-loss accidents/incidents for the airline.