Privatization of Aerolíneas Argentinas: the Government justified the initiative

Privatization of Aerolíneas Argentinas: the Government justified the initiative

September 27, 2024 – 18:00

The Secretary of Transportation, Franco Mogetta, and the president of the company, Fabián Lombardo, gave their opinion on the decision to move forward with a decree.

After the announcement of a futuredecree to privatize Aerolíneas Argentinashe Government came out this friday justify the decision. The Secretary of Transportation, Franco Mogettaassured that this initiative will allow costs to be lowered and not be tied to very “expensive” destinations. Meanwhile, the president of the airline company, Fabian Lombardostated that as it is “it is not competitive.”

President Javier Milei has already tried to advance the privatization of the flag line with the Bases Lawbut the opposition managed to rally the will to include it in the list of companies excluded from this process.

Despite that, with the conflict with the aeronautical unions already unleashed, Starting from the decree, the Government will try to get Congress to approve its sale. If this is not the case before the end of the year, it emerged that it would be transferred into the hands of the workers.

After the announcement, the secretary of transportation He came out to justify the measure and ask Congress to support the initiative. “We appeal to the responsibility of the members of Congress to give favorable treatment to this initiative so as not to be imprisoned in places where only the company operates.with very high prices to be able to fly, and to subject Airlines to market rules, to compete on equal terms. For that, it needs to be private,” he stated in an interview for LN+.

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The president of Aerolíneas Argentinas, Fabián Lombardo.

The president of Aerolíneas Argentinas, Fabián Lombardo.

The president of Aerolíneas Argentinas, Fabian Lombardostated that the decision of the decree is due to the fact that the privatization projects that were presented in recent weeks did not advance in Congress. “In general, the companies that compete with Aerolíneas Argentinas in South America today are private, the market has changed“What exists today is fierce competition and the airlines that compete in these markets have to adapt to these changes,” he said.

“This has to do with personnel issues and collective agreements that make the situation uncompetitive with the rest of the companies. We have to work on that. If the company does not resolve certain issues related to these points, the bidders will not exist.“he stressed.

Javier Milei’s decree to privatize Aerolíneas Argentinas

President Javier Milei will sign a decree to “declare Aerolíneas Argentinas subject to privatization”, with the aim of the state company passing into private hands. As confirmed Scopethe Government is protected by article 9 of Law No. 23,696 on the Reform of the Menemist State.

The measure will be published in the Official Gazette next week and It will then be communicated to the National Congress, which must assign parliamentary processing preferably to the sanction of the law..

After being left out of the list of companies to be privatized in the Bases Law, the ruling party thus revives the idea of ​​selling Aerolíneas Argentinas, within the framework of the conflict with the aeronautical unions and the strikes that have occurred in recent weeks.

Source: Ambito

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