Atlantic Airlines has suspended operations while it conducts maintenance on its fleet, according to marketing manager Eliseth López.

López said Atlantic's daily flights from Managua to the Caribbean will be grounded until the end of the month.

A group of Atlantic workers recently told Nicaraguan press that the company was seeking to close down after the National Civil Aeronautic Institute demanded that the firm perform preventive maintenance on its fleet.

Atlantic denies the allegations and said the maintenance was the company's own initiative. During the fix-up period, set to last one month beginning from June 26, the workers aren't receiving pay.

Atlantic became one of two airlines with flights to the Caribbean from Managua after the government cancelled Aerosegovia's license to fly in 2003 for a slew of irregularities, including outdated equipment and failure to pay airport taxes. Atlantic, which also operates in Honduras, now competes with Grupo Taca partner La Costeña, both of which offer daily flights to a handful of destinations in eastern Nicaragua.