Buenos Aires, Oct 29 (EFE).- A bill to privatize Aerolíneas Argentinasthe country’s main airline company, obtained the endorsement of parliamentary committees this Tuesday so that the initiative can be debated in the plenary session of the Chamber of Deputies.
The project, promoted by the opposition and which has the support of the ruling party, was endorsed by the majority of the members of the Transportation and Budget and Finance commissions of the Lower House who met this Tuesday.
With this positive opinion, the initiative can be debated in the plenary session of the Chamber of Deputies, on a date yet to be defined.
On October 2, the Argentine president, Javier Milei, decreed the state-owned Aerolíneas Argentinas “subject to privatization.”
The decree indicates that since the airline returned to the hands of the State, in 2008, it presented “marked losses, which were mitigated” through contributions from the national Treasury that so far amount to 8,000 million dollars.
The Milei Government, which seeks to privatize several companies, also maintains that there is an “oversizing” of the structure of the company, which has 11,386 workers, compared to other airline companies in the region.
The airline service in Argentina is convulsed by the union conflicts that have been going on since mid-August demanding better salaries.
The assemblies 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 million-dollar economic losses.
This Wednesday, the unions that represent the company’s workers will join the 24-hour strike that the transport sector unions in Argentina will carry out.
Created in 1950, Aerolíneas was privatized in 1990 and sold to the Spanish company Iberia, which, eight years later, handed over management to the American airline American Airlines.
The operation of the company passed in 2000 to the State Society of Industrial Participations (SEPI) of Spain, which in October 2001 transferred Aerolíneas to the Spanish private group Marsans.
In 2009, the Argentine State expropriated the flag airline from Marsans, which since mid-2008 had already been managed by the Argentine Government after entering a severe financial crisis.
Airlines have 84 operational aircraft in their fleet and account for 62% of passengers on domestic flights, a market in full transformation due to the ‘open skies’ policy promoted by Milei.
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Is pushing for extensive economic reforms, believes that privatizing Aerolíneas Argentinas could significantly reduce government expenditure and improve efficiency. To discuss this hot topic, we have Mr. Carlos Fernández, an economist and political analyst based in Buenos Aires. Welcome, Carlos!
**Interviewer:** Thank you for joining us. Javier Milei has taken a bold approach by pushing forward the privatization of Aerolíneas Argentinas. What are the main arguments for and against this move?
**Carlos Fernández:** Thank you for having me. The main argument in favor of the privatization is grounded in the financial losses that Aerolíneas has incurred since its nationalization in 2008. Proponents argue that privatization could lead to better management and operational efficiency, ultimately benefiting consumers with improved services and possibly lower fares.
On the other hand, critics raise concerns about job losses and the potential decline in service quality, particularly for routes to less profitable areas that might not attract private investment. There’s also a fear that privatization might increase airfares for the general public.
**Interviewer:** The bill has received endorsement from relevant parliamentary committees. How do you anticipate the debate in the Chamber of Deputies will unfold?
**Carlos Fernández:** The debate will likely be heated, reflecting the country’s polarized political climate. The ruling party’s support is crucial, but opposition members will fiercely argue against the loss of a national asset. Depending on public sentiment—especially among airline employees and unions—this could become a contentious issue. I wouldn’t be surprised to see significant protests if the privatization moves forward.
**Interviewer:** You mentioned public sentiment. How do you think the Argentine population views this privatization initiative?
**Carlos Fernández:** Public opinion is quite divided. On one hand, there are citizens who support President Milei’s approach, believing it could stabilize the economy and end inefficiencies. However, there is also a significant portion of the population that feels skeptical about privatization, remembering past experiences where privatized services have led to neglect of social responsibility.
**Interviewer:** Lastly, what do you think are the potential long-term effects of privatizing Aerolíneas Argentinas on the Argentine economy?
**Carlos Fernández:** If executed successfully, privatization could attract foreign investment, improve service levels, and reduce the fiscal burden on the government. However, if mishandled, it could lead to increased rates of unemployment and rising costs for consumers. The long-term effects will depend on how well the transition is managed and whether the new owners prioritize national interests alongside profit.
**Interviewer:** Thank you, Carlos, for your insightful analysis. We appreciate your time.
**Carlos Fernández:** Thank you for having me. It’s a pivotal moment for Argentina.
