LAPSA was formed as a state-owned company in 1962 with service to Buenos Aires, São Paulo and Rio de Janeiro. By 1965, its fleet was consisted of two Convair CV-240 and three L-188 Electra. By 1978, Lapsa began its jet era with the purchase of two Boeing 707. Within two years, Lapsa had flights to Miami, Frankfurt, and Madrid.
Due to its poor service, inefficient operations, outdated equipment and overemployment as a result of being a state-owned company, Lapas was losing $1.3 million a month. It was privatized in March 1995 after Andrés Rodríguez's government chose to privatize many state-owned corporations.