PAL Airlines (Santiago de Chile) has suspended operations after the Chilean civil aviation authority (Dirección General de Aeronáutica Civil - DGAC) grounded it on fiduciary grounds. According to AeroLatinNews, a DGAC audit of PAL's accounts showed the airline had defaulted in its payment of passenger embarkation taxes as well as aeronautical charges.

This is the second time the DGAC has forced PAL to suspend operations within the space of six months. In May, the regulator suspended PAL's Air Operators Certificate (AOC) for 10 days for "breaching technical requirements" that could "endanger safety."

Prior to the suspension, PAL had operated two B737-300s on charter flights throughout Chile.