Javier Milei goes to war with Argentina’s airline unions

[Vero]

Let's see how this mess turns out. Aerolineas has 2/3 of the domestic market so this could get ugly.

https://archive.ph/xYDLh

 

[Vince]

They need to privatize Aerolíneas Argentinas ASAP. Billions and billions of dollars are being spent subsidizing this airline. It has to get approval from Congress which won't be easy. Sounds like we have a mess coming up. I hope we get more and more discount airlines coming. LatAm left because the labor unions were too impossible to deal with and the peso was depreciating so much. Hopefully now they will come back.

 

[Wally]

I didn't realize it's been $8 billion since 2008. Ugly just ugly. I can't see anyone wanting to buy this loser. Most of the routes are losing money. And can't see labor situation and unions situation improving either. You'd have to be crazy to buy this airline.

 

[Uncle Wong]

Let's see how this mess turns out. Aerolineas has 2/3 of the domestic market so this could get ugly.

https://archive.ph/xYDLh

Thanks for posting that article. Actually it sounds like things are improving. That article said that the State didn't give any subsidies in 2023 so that is a good start. As long as the government isn't having to spend money. In 2022 it said $246 million. Probably with some changes it could stop losing money.

 

[Digital Nomad]

Thanks for posting that article. Actually it sounds like things are improving. That article said that the State didn't give any subsidies in 2023 so that is a good start. As long as the government isn't having to spend money. In 2022 it said $246 million. Probably with some changes it could stop losing money.

But it said last year they were only able to avoid it by charging for tickets at the fake official rate and then converting revenue at the parallel rate. The spread is very close now. Of course it could change but I am wondering who would buy this? Maybe they will just sell parts of it or routes.


In 2023, the company received no money from the Treasury. But people familiar with its finances said that was largely because of its ability to charge for tickets abroad at the peso’s artificially inflated official exchange rate, while converting revenue at the lower parallel rate. The company also issued $100mn in debt last year via a trust.