The president of Argentina, Javier Milei, decreed this Wednesday “subject to privatization“to the state Argentine Airlinesthe largest airline in the country and involved in union conflicts for several weeks.
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The decree indicates that since the airline returned to the hands of the State, in 2008, “it presented marked losses, which were mitigated” through contributions from the national Treasury that until now amount to 8 billion dollars and that, “despite the serious economic result produced by the management of Aerolíneas Argentinas, its employees maintain important benefits that contribute to worsening the situation.”
He also maintains that there is a “oversizing of the structure” of the company compared to other airlines in the region.
“Despite the efforts made by the national State and the decrease in contributions from the Treasury, the company’s financial statements maintain a serious deficit that makes it impossible to operate under free market conditions,” the decree states.
It presented marked losses, which were mitigated
The decision will be notified to Parliament, where two bills are currently being analyzed to privatize the company, which has 11,386 workers.
The airline service in Argentina is convulsed by the union conflicts that have been going on since mid-August demanding better salaries.
The assemblies and strikes carried out by Aerolíneas Argentinas unions have caused hundreds of cancellations, delays and rescheduling of domestic and international flights, affecting thousands of passengers and generating million-dollar economic losses.
Created in 1950, Airlines was privatized in 1990 and sold to the Spanish company Iberia, which, eight years later, handed over management to the American airline American Airlines.
The operation of the company passed in 2000 to the State Society of Industrial Participations (SEPI) of Spain, which in October 2001 transferred Aerolíneas to the Spanish private group Marsans.
In 2009 the Argentine State expropriated Marsans the flag airline, which since mid-2008 was already managed by the Argentine Government after entering a severe financial crisis.
Airlines has 84 aircraft operational in its fleet and monopolizes 62% of passengers on domestic flights, a market in full transformation due to the ‘open skies’ policy promoted by Milei.
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