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LA PAZ, Bolivia (AP) -- The Bolivian government announced plans to launch a new state-run airline that is expected to begin domestic service early next year. Boliviana de Aviacion, or BoA, aims to "democratize air transport in Bolivia, improve the conditions in which services are provided (and) give the population another option for air travel," National Air Transport director Ronal Casso said Friday. The government will spend an initial $15 million to start the airline, which may lease its first planes, he said. Its fleet size has not yet been decided. BoA is meant to fill a void in domestic air travel left by the collapse of Lloyd Aereo Boliviano, or LAB, a state airline privatized in the 1990s and now near bankruptcy. The government will not subsidize the new airline's rates, Casso said, noting that BoA will operate under "exactly the same conditions" as private carriers, such as American Airlines and AeroSur, that now operate in Bolivia. Since taking office last year, Bolivian President Evo Morales has boosted government control over the nation's economy, nationalizing its oil and gas industry, railroads, former state phone company and a tin smelter.
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