The Latin American Civil Aviation Commission (LACAC) was formed in December 1973 "intended to provide civil aviation authorities in the region with an adequate framework for cooperation and coordination of activities related to civil aviation".[12] In 1976, about seven percent of the world logged in the Latin American and Caribbean region.[2] This contributed to the increase of average annual rate of air traffic.[11] Subsequently, higher passenger load factor decided the profitability of these airlines.