A final chapter has been written in the history of Ecuadorian aviation. The liquidation of Tame EP Linea Aerea del Ecuador, the former state-owned flag carrier, was officially completed on Dec. 26, 2025. This concludes a protracted five-year process for the airline, which first ceased operations in May 2020 amidst severe financial distress exacerbated by the COVID-19 pandemic.
A Lengthy Wind-Down
The journey to final liquidation was complex and lengthy. Initiated by government decree after the airline accrued losses exceeding $400 million, the process faced multiple delays. As recently as December 2023, progress was reported at less than 50% complete. The liquidator’s final duties involved auctioning the carrier’s remaining assets, including Embraer E190 and Kodiak aircraft, along with spare parts. These sales were crucial to settling outstanding debts with major creditors, including the state oil company, Petroecuador.
Shifting Skies in Ecuador’s Market
With TAME’s liquidation finalised, its operational legacy is firmly in the past. The carrier, originally founded by the Ecuadorian Air Force in 1962, once served as the nation’s largest airline, operating a fleet that grew to include Boeing 7277s and Airbus A320s. Its departure created a significant in domestic connectivity. In the years since its grounding, the Ecuadorian market has been reshaped, with LATAM Ecuador and Avianca Ecuador becoming the primary carriers servicing both domestic and international routes from the country.
The formal closure of TAME’s liquidation marks a definitive endpoint for an iconic national carrier. It underscores the harsh economic realities of the pandemic era while highlighting the ongoing evolution of South America’s competitive aviation landscape.
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