During the 1970s the Peruvian military government had successfully built up its new flag carrier AeroPerú into a seemingly well run airline reconnecting Peru with the world after APSA's failure. Unfortunately it is almost impossible to keep an airline operating profitably if it must operate in a competitive environment with both economic and civil discord at home. Sadly AeroPerú would have to contend not only with economic instability but also growing civil war as it entered its second decade.
In July 1981 AeroPerú was largely privatised (the govt kept only a 20% share) and a merger was mooted with its private rival Faucett Perú. This got as far as the airline's dropping competing routes but eventually came to nothing and the routes were restarted. The expiry of the bilateral agreement between Peru and the USA in 1983 and the resulting failure to negotiate a new one, led to the suspension of all US routes for a year from May 1984 and considering this was the flagship route the financial repercussions must have been quite serious.