Bolivia's Minister of Public Works, Milton Claros, has warned local operator Transporte Aéreo Militar - TAM (La Paz El Alto) that it must secure an Air Operator Certificate (AOC) from the country's civil aviation authority (Dirección General de Aeronáutica Civil - DGAC) by the end of the year or risk being grounded.

According to Bolivia's Los Tiempos newspaper, Claros warned the carrier, which plies domestic passenger flights for passengers and on behalf of owner Fuerza Aérea Boliviana (Cochabamba), that it must submit to civilian scrutiny if it is to operate within the sector. Several previous deadlines for the carrier to comply have lapsed with no consequences and any further delays, Claros warned, could put Bolivia at risk of violating International Civil Aviation Organization (ICAO) regulations.

"We have taken steps and have sent notes out concerning our future options which could entail DGAC and AASANA (Bolivia's air navigation services body) withholding permission for TAM to operate regular flights," he said.

DGAC director general Edgar Pereyra has meanwhile confirmed TAM embarked on its AOC certification drive back in May and is currently on Phase 2.

TAM CEO Julio Cesar Villarroel has said his company is in the process of transitioning away from the Air Force to becoming a publically-listed company.

Founded in 1945 as Escuadrón de Transporte Aéreo, TAM operates six B737-200Advs, one B737-300, three BAe 146-200s, and two MA-60s on flights to remote parts of Bolivia that many commercial airlines do not serve owing to viability concerns.