Aerolineas Argentina goes through changes
Filed Under Argentina
Aerolineas Argentinas will finally become Argentina’s airline again after more than 18 years. After the aggressive takeover of the airline, the company eventually gave in to the demands of government. Initially, the takeover should have been smooth without any problem. However, difference in auditing which offers disparity of the total value of the company has stopped the negotiations. The government thought the airline and its subsidiary costs a lot less since the company currently owes as much as US$900 million. On the other hand, travel group Marsans (the owner) disputed the claims as the company has been in existence for almost two decades.
The move of the government to nationalize the airline came after the company has continuously suffered cancelled flights due to mismanagement.
Part of the disappointment also stems from the fact that even though Aerolineas Argentinas is originally a state owned airline, it is currently under a Spanish based company. More than 80% of the local airline travel is through Aerolineas Argentinas and cancellations of different flights have affected millions of travellers around the country. Local workers have shown support to the take over and have vowed to work harder so that the new state airline will be back on its track again.
But this move has solicited some criticisms from different business communities both local and from the Spanish business community. The government has been aggressive in taking over various facilities. They say that if this continues, it will ultimately scare away investors as business will never be secured since the government might take over their operations anytime.
