Spanish travel group Marsans, which owns Aerolineas Argentinas, plans to create a new unit in Peru and begin flights there within five months, an Aerolineas spokesman said on Friday.

"We're setting up a company... in Peru in which Marsans will have 49 percent and Peruvian investors will have 51 percent," Julio Scaramella, Aerolineas spokesman in Buenos Aires said.

Scaramella said he expected the debut of the new Peruvian company, called Aerolineas del Peru, to take no longer than five months because of the Peruvian government's warm welcome.

A key competitor in Peru, Chilean airline LAN, has become unpopular with the Peruvian government due to a scandal over an in-flight video depicting images of Lima considered offensive.

Peruvian President Alejandro Toledo said he would sue LAN for damages.

"We've already informed President Toledo and the transport minister, who look kindly on the arrival of the company there due to the problems they've had with LanPeru," said Scaramella.

Aerolineas del Peru will make an initial investment of USD$10 million, excluding the purchase of planes - and expects to employ 400 people by the end of the first year.

Scaramella said Marsans will lease six Boeing 737-300 planes.