The airline was formed in 1977, initially aimed at providing internal services within the Buenos Aires Province. In May 1978, it was authorised to operate charter services to cities in the Americas, and scheduled services began the following year. By, the major shareholder of the company was Claudio Zichy-Thyssen; the fleet comprised three YS-11As and a Piper Cheyenne that worked on a domestic passenger and cargo network serving Concordia, Ezeiza Airport, Gualeguaychu, La Plata, Necochea, Olavarria, Parana, Pehuajo, San Nicolas and Tres Arroyos. Gustavo Deutsch acquired the company in 1984, when it had a network consisting of two domestic routes served with a single propeller aircraft. In January 1987, the airline became the first South American operator of the Saab 340. The carrier started a period of major grow in 1993 when it gained permissions to fly to Bariloche, Córdoba, Iguazú and Mar del Plata. A year later, the route network included 17 destinations, served with three aircraft. At, LAPA had 60 employees; the fleet consisted of one Beech B-58 Baron, one Beech King Air 500, two Boeing 737s and two Saab 340s that worked on routes to Bariloche, Colonia, Córdoba, Iguazú, Mar del Plata, Mendoza, Montevideo and Villa Gessel. LAPA became a Boeing 757 operator in September 1995 when it took possession of its first aircraft of the type. By late 1996, LAPA had a 30% of domestic market share.
Change of ownership and name
On the airline changed its name to ARG Argentina Línea Privada following the acquisition of the company by Eduardo Eurnekian. Aircraft were painted in a new livery, displaying the acronym ARG on both sides of the fuselage. This situation prompted an issue with the airline's name, as ARG is the ICAO airline code for Aerolíneas Argentinas. In mid-2002 the name of the airline was changed to AIRG. Bolivian airline AeroSur and four Argentine investors acquired the airline on, and the original name LAPA was restored.
Downfall and ceased operations
The company filed for bankruptcy protection in May 2001, and ceased operations in April 2003, after three of its five aircraft were repossessed by the lessors.
Prior to its bankruptcy in April 2003, the most modern aircraft in the fleet, such as the brand-new Boeing 737-700s, Boeing 757-200s, as well as a single Boeing 767-300ER the company flew the Buenos Aires–Atlanta route with, were gradually returned to their lessors throughout 2001 and 2002, as their leases proved too expensive. When LAPA ceased operations in April 2003, only three of its remaining five Boeing 737-200 Advanced were operational. The company operated the following aircraft throughout its history:
: Flight 3142, a Boeing 737-200C, registration LV-WRZ, that operated a scheduled Buenos Aires–Córdoba passenger service, crashed during takeoff from Aeroparque Jorge Newbery after it failed to get airborne. Unable to stop, the aircraft overshot the runway, hit the perimeter fence at a speed greater than, hit a car while crossing an avenue, collided with a wall and heavy construction machinery, came to rest on a golf course, and burst into flames less than a minute later. Out of 103 occupants of the plane, 63 perished in the accident, plus 2 ground casualties. The accident remains the second deadliest one in the Argentine aviation history, behind Austral Líneas Aéreas Flight 2553.
