Argentina’s state-run airline may be getting a new owner. The beleaguered carrier hasn’t made a profit since 2008 and continues to be a hot-ticket item on President Javier Milei’s administrative chopping block.
Aerolineas Argentinas was nationalized roughly 16 years ago and has posted year-over-year losses ever since. Milei’s desire to shrink the country’s administrative state has left the airline in limbo.
Earlier this year, it ended long-haul flights to New York-JFK from Buenos Aires. In addition, the airline continues to cancel scores of flights due to transport workers’ strikes throughout the country.
These ongoing labor issues have further fueled Milei’s desire to privatize the carrier, which, according to some government estimates, has received over $8 billion in government funding.
Now, Milei’s administration has given an ultimatum. According to Okdiario, if the airline is not privatized, it will be shut down.
Furthermore, if a labor agreement is not reached by Friday afternoon, the airline may eventually cease operations, reports say.
New Buyers
Per Argentinian news site Informate Salta, a new purchase deal could be on the horizon. A consortium that includes both Avianca and Delta has reportedly presented a plan to buy the ailing airline.
The proposal is already under review by government officials and the country’s Ministry of Transport, the report said. Delta and Aerolineas Argentinas are both members of the SkyTeam alliance, while Avianca maintains a strong presence in Latin America.
Neither Delta nor Avianca immediately replied to AirlineGeeks’ request for comment on the proposed transaction.
