The Peruvian government has grounded a local unit of Chile's LAN Airlines following a court ruling that the carrier failed to comply with civil aviation regulations.

Peruvian officials say the suspension of the unit, LanPeru, takes effect on Friday and that 22 local and international flights will be grounded. At least 5,500 passengers fly LanPeru on a daily basis.

The decision follows a complaint by a rival airline that LanPeru lacked sufficient Peruvian investors. LanPeru has rejected the accusations and says it will appeal the court's decision.