The international air services provided to and from Peru from the mid-forties until the beginning of the decade of the sixties were under dominance of the Panagra (the joint of the Pan American airways and the W.R Grace Corporation).
With almost no competition in the very low fare market of the South-American west coast, this airline could develop an effective monopoly during this period of time.
The airline was founded on January 14, 1946, with a capital of four million dollars (or $47.7 million in 2023) by a group of investors of three different countries, Peru, Canada and the United States of America headed by nonetheless than C.M Keys, also initial promoter of Faucett Airlines.
The airline started operations a little more than a year later on May 14, 1947, using the Douglas DC-4 with flight to Havana via Panama to the north.
The network was promptly extended to the south to Santiago via Antofagasta a few months later and half a year after initiating operations.