.jpg)
Argentine President Javier Milei will declare state-owned company Aerolíneas Argentinas " susceptible to privatization ," presidential spokesman Manuel Adorni said Friday.
The decision comes amid a confrontation between the government and the company and the aeronautical unions over strikes demanding an improvement in collective bargaining, and which also reject privatization.
Appearing before the media at Casa Rosada, the spokesman indicated that "probably in the first days of next week" the president will issue a decree so that the company will be "subject to privatization."
" Aerolíneas Argentinas has been dragging a chronic deficit as a result of the disastrous management of each and every one of the populist governments , which causes the need to make constant transfers of public resources that put fiscal sustainability at risk," he explained.
Milei will make that decision under Article 9 of Law 23696, on State Reform , which indicates that the declaration of "subject to privatization" will be made by the Executive, although it must be "approved by law of Congress " after a "preferential parliamentary process."
According to the Executive, since its return to state hands in 2008, the Argentine State has pumped around 8 billion dollars (from the tax payers) "to cover the company's deficit," which it described as unjustified towards citizens, many of whom have never flown in their lives.
Adorni also revealed that Aerolíneas Argentinas has a staff of 1,204 Line Pilots for 81 active aircraft, which is an excessive number compared to the industry standards, he said,
"This atrocity is also reflected in its oversized structure, which has a staff of 1,204 airline pilots to fly 81 active aircraft, which is an absolutely excessive number compared to the industry average," Adorni said.
This announcement comes days after the Executive defended in the Chamber of Deputies its intention to promote two projects to privatize the company so that Argentines can fly "better, further and at a better price."
"The State is a terrible business manager ," said Deputy Chief of Staff José Rolandi at a joint meeting of the Transport and Budget and Finance Committees.
The Secretary of Transportation, Franco Mogetta, also referred to the issue, insisting on the need to privatize the company by warning that the State should not take over a company that “generates losses .”
“From the national government we insist on the need to privatize the airline so that it can compete with the rules of a private company and give greater efficiency to the company,” said Mogetta.
.jpg)
The same was supported by the president of Aerolíneas Argentinas , Fabián Lombardo, who justified the need to privatize the company with the argument that
“under current conditions it cannot compete with the rest of the companies in America and Europe.” He also pointed out that the unions did not understand that the company “has an economic situation in which it cannot give more than it does not have . ”
The commercial air service in Argentina is in turmoil due to union conflicts that have intensified in the last two months in demands for salary increases.
The meetings 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 millions in economic losses.
The conflict between the Government and the aeronautical unions has had several chapters in recent weeks, in which the sending of telegrams to at least three commanders for refusing to fly and harming users, the dismissal of two Intercargo workers for deliberately delaying the transfer of suitcases after a video of the airport terminal went viral, and also the dismissal of three others, investigated by the Justice for stealing the contents of the luggage.
Created in the year 1950, state owned Aerolíneas Argentinas was privatized in 1989, when the majority of the shares were transferred to the Spanish company Iberia.
According to sources, the Brazilian GOL and Avianca from Colombia could be the interested parties in participating in the privatization process.
As per the legal provisions in force in Argentina, President Milei has the power to promote this privatization, but it must then be approved by Congress, which would have the final say regarding the possible privatization of the company.
.jpg)
.jpg)
