The Argentine government reportedó the beginning of the privatization processóno sale of Aerolíneas Argentinas facing a panorama of low operational profitability.
The recent proposal to privatize Aerolíneas Argentinas has generated an intense debate in the aviation sectoráArgentine utico and in the ámuch fearítico.
After the official statements of the envíor if a decree to sell Aerolíneas Argentinas, but what a dutyá be approved by Congress, many points of view have echoed in meúmultiple publications.
New sale and privatization soughtón of Aerolíneas Argentinas
It's not the first time, in their 75 añhistory and connectivity, that the company has gone through several ownership changes, among which the management of Iberia for 8 años and afterés the úLast attempt was private management throughés of the well-known group Marsans (Air Comet), that does not prosperó and tookó again to the airínea to a deep economic crisisómica, what reasonó the re-nationalizationón of the airline el 22 august 2008.
Context and background
La privatizationón of Aerolíneas Argentinas It is not a new issue on the political agenda.íArgentinian ethics. Nevertheless, the current proposal, promoted by the government of Javier Milei and supported by different political forcesíethics, has gained greater relevance in the úrecent months and it was already confirmed by Casa Rosada itself in a press conference: wants to sell Aerolíneas Argentinas.
¿It will be possible to sell? That is the main question, since due to the well-known and millionaire péaccumulated losses and liabilities, the airline on paper, not oweíto be not at all attractive to any large companyérea.
In this publicationón and partially, I am going to show the different points of view that I have been able to collect and alsoén the implications that couldíto bring this state movement.
Sayún the sources consulted, The main arguments in favor of privatizationón are the following:
- Greater efficiency: The management is expectedón private of the aerosolínea allows greater efficiency in the operationón, reducing costs and improving service quality.
- Increased competition: The entry of new players in the market couldíto generate greater competition, what to benefitíto consumers throughés of a reductionón rates and an increase in flight options, This is said from the concept that there is a protectionist state in favor of Aerolídenies.
- Reductionón of démakes a fiscal: La privatizationón allowíto the State to stop subsidizing the airlineínea, freeing resources for other priorities so demanded by Argentines.
On the other hand, the detractors of privatizationóThey do not argue that:
- Pérdida de surplusía: La privatizationócan'títo involve a péloss of state control over a strategic assetélogical how is an airplaneíflag line.
- Layoffs and péloss of labor rights: Se teme que la privatizationómay entail a restructuring processón that negatively affects airline workersínea, who currently employs más de 10.800 workers.
- decreaseón of connectivity in regional destinations: There is a risk that new companies will prioritize m routesás rentables, leaving aside regional destinations. AerolíNeas Argentinas as a state entity prioritizes unprofitable routes with low demand, but that guarantees access to transportation toéprisoner in remote regions of Argentina.
Implications for the aviation sectoráuseful
La privatizationón of AerolíArgentine lines will haveá a significant impact on the aviation sectoráArgentinian utico as wellén its possible closure if a sale is not achieved and the government cuts off access to fiscal resources. Some of the possible effects are:
- Restructuringón of the market: The entry of new players in the market couldíto generate a restructuringón of the same, with the aparición of new alliances and the disappearanceón of others.
- Changes in working conditions: Airline workersíno dutyán adapt to the new working conditions imposed by private companies.
- Modifications in the flight offer: Changes in flight offerings are likely, with the aparición of new routes and the disappearanceón of others.
Future perspectives
La privatizationón of AerolíArgentine business is a complex process that will requireá of extensive debate and consensusítico. The final result will dependá decóhow this process is managed and the conditions established for the sale of the company.
In the prówe cry months, The National Congress is expected toón debate and vote on the corresponding bill. To beá It is essential that the actors involved in the aerospace sectoráutico actively participate in this debate, contributing their knowledge and experience to ensure that privatizationón it is carried out in a transparent manner and for the benefit of all Argentines.
Sí is approved in congress, It is not the end of the process, since it will comeá the part máIt's complicated, sell it as such, which is not seen as a task fácil, más aún, If the economic balancesómicos are so negative like thatñaxis añyou are being told.
¿It is interesting to buy Aerolíneas Argentinas? The answer mustá come from anácomplete market analysis, offer and economyómicas del país. Sí a large group purchases, not necessarily beá for its assets, but alsoén, in case AOC and the process más ráI ask to enter a market of más de 46 millions of inhabitants.
¿You think it will sellá? I read them in the comments.
