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Aerolíneas Argentinas: why Milei wants to sell it, what will happen with the strikes and other keys to understanding the future of the national airline - Infobae
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Aerolíneas Argentinas: por qué Milei quiere venderla, qué va a pasar con los paros y otras claves para entender el futuro de la compañía de bandera
El gobierno anunció que evalúa ceder el control de la compañía a empresas privadas ante las persistentes medidas de fuerza impulsadas por los gremios del sector. Mientras los sindicatos preparan nuevas protestas y acciones legales, ya hay firmas interesadas en comprar
www.infobae.com
September 20, 2024
The government announced that it is considering handing over control of the company to private companies in the face of persistent strikes by unions in the sector. While unions are preparing new protests and legal actions, there are already firms interested in buying the company.
The Government is in talks with several companies for the sale of Aerolíneas Argentinas
Javier Milei 's government has made it clear that one of its priorities is to reduce the fiscal deficit and Aerolíneas Argentinas , one of the most expensive companies for the State, is at the center of this strategy. According to the presidential spokesman, Manuel Adorni, talks with several Latin American companies to cede the airline's operations are already underway. The main trigger behind this initiative, he said, is "extortion by unions," referring to the recent strikes that affected thousands of passengers and generated million-dollar losses.
President Milei said that the state-owned company cannot continue to operate under the current conditions, where unions have significant control over its operations. According to Adorni, Aerolíneas pilots enjoy privileges such as business class travel for themselves and their families, salaries of up to 10 million pesos, and working conditions that the government considers excessive compared to other companies in the region.
Interested companies and possible privatization
Several international companies have expressed interest in Aerolíneas Argentinas. Among the names that are most strongly mentioned are Avianca (Colombia), Latam (Chile) and Azul Líneas Aéreas (Brazil) , the businessman Germán Efromovich (Bolivia), according to regional media reports and confirmed by sources from the Argentine government. In addition, there is said to be a local tourism group that could partner with a European company if it goes after the state-owned company. Privatization, however, is not a simple process: it requires the approval of Congress, and a recent attempt to include Aerolíneas on the list of companies to be privatized was rejected by the opposition. Despite this, the government continues to explore the possibility of handing over the operation of the state-owned airline.
Latam is one of the companies mentioned by official sources, although spokesmen denied that they are in talks for a possible acquisition (Andina)
"In relation to statements made by various media in different countries about the interest in purchasing Aerolíneas Argentinas, the LATAM group informs that it is not part of these conversations," the Chilean firm reported today.
Aerolíneas Argentinas President Fabián Lombardo confirmed that there have been talks with various international groups that are interested in learning about the privatization process. However, there is no clear timeline or specific details on how this operation would be carried out.
The conflict with the unions and the strikes
One of the biggest obstacles facing Aerolíneas Argentinas on its path to privatization is the conflict with the aeronautical unions, which are showing strong resistance. The Association of Airline Pilots (APLA) and the Argentine Association of Flight Attendants (AAA) have been staging strikes that affect both Aeroparque and Ezeiza, and according to their representatives, they do not intend to back down without obtaining salary increases.The unions, led by figures such as Pablo Biró and Juan Pablo Brey , denounced that the government intends to close the airline and decided to take their fight to court. They even challenged the presidential decree that declares civil and commercial aeronautics as an essential service, which limits the right to strike. The decree requires unions to announce any strike action five days in advance and guarantee 50% of minimum services. Despite this, the unions anticipated that they will not comply with the law and are preparing to continue with the strikes.
The conflict between the government and the unions thus seems far from being resolved. The unions' refusal to comply with the presidential decree, coupled with the lack of progress in salary negotiations, has led to the possibility of more strikes in the coming days. APLA and AAA are already considering the suspension of training centers, which could affect the airline's operations in the long term, since pilots and flight attendants will not be able to revalidate their work licenses.
Dozens of flights have been cancelled across the country in recent weeks. (Adrián Escándar)
The government, for its part, has hardened its stance. The Ministry of Security has filed charges against Biró for extortion and threats, and the Secretary of Transport, Franco Mogetta, has announced that compensation will be demanded for the damages that the strikes have caused to the company.
The future of the company
The fate of Aerolíneas Argentinas depends on several factors. Firstly, negotiations with companies interested in privatising the company will be crucial to defining whether the airline will remain state-owned or will pass into private hands. However, Congress will play a key role in this process, since any attempt at privatisation must be approved in that sphere. There are already plans in this direction.On the other hand, the conflict with the unions remains one of the main unknowns. As long as the unions continue with their plan of struggle, the future of Aerolíneas will be uncertain. The government's firm stance against strikes and union benefits is clear, but the workers' resistance could lead to new confrontations that further complicate the situation.
The truth is that the future of Aerolíneas Argentinas is not at all clear. Between the possibility of privatization , labor conflicts and economic restrictions, the company faces a far from clear outlook. What happens in the coming months will be decisive in defining whether the flag carrier will continue flying under state control or whether it will finally be sold to private hands.
