Privatization of Aerolineas Argentinas to begin through legislative decree
One of President Javier Milei’s campaign promises, Aerolineas Argentinas will be considered “subject to privatization” through a decree to be signed this week.
The decree is the first step in the process of selling the flag carrier, which was renationalized in 2008.
In a press conference on September 27, the government explained the plans, which still need to be approved by the country’s Congress.
According to presidential spokesman Manuel Adorni, Aerolineas Argentinas has been running deficits and has had to receive around US$8 billion in government transfers to continue operating.
“In 2023 alone, Aerolíneas Argentinas’ operating deficit was US$390 million, and to date it is US$84 million,” the government said.
One of the symptoms of the company’s inefficiency, according to Milei’s management, is that there are 1,204 pilots for a fleet of 81 aircraft, or almost 15 crew members per jet.
Another argument cited is that today there are no efficient airlines that are 100% managed by the state. “In the few cases in which the State has a stake, it is a minority stakeholder, and can contribute its opinion on strategic issues,” they said.
Different context
When asked about the failure of the first privatization of Aerolineas in 1990, government representatives believe that the current context is different from four decades ago, when former President Carlos Menem sold the company to a consortium led by the Iberia group.
At that time, Aerolineas ceased to be state-owned, but maintained its exclusivity in the Argentine air travel market.
Currently, air transport in the country relies on other airlines, such as the low-cost airlines Flybondi and JetSmart.
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