On 1 October 2024, the executive branch through Decree 873/2024 (the “Decree”), establishes the privatization of Aerolíneas Argentinas S.A., based on laws 23.696, 26.412, 26.466 and 27.742, and previous decrees such as 70/2023 and 599/2024.
The decree mentions the need to privatize the company due to its economic inefficiency and the financial burden it represents for the state. Since its nationalization in 2008, the company has generated losses in the millions, compensated with funds from the National Treasury amounting to USD 8 billion. In addition, there is mention of an excess of employees and excessive benefits for workers, particularly pilots.
The current economic context of the country, marked by high poverty and a high fiscal deficit, reinforces the urgency of rationalizing state resources. The privatization of Aerolíneas Argentinas seeks to make the company operate under criteria of commercial efficiency, eliminating its chronic deficit and reducing the fiscal burden on the population.
The decree refers to the privatization process to the procedures established in Law 23.696, allowing different modalities of sale or concession of assets, shares or rights of the company. The aim is to improve the airline service, promote competitiveness and ensure that the company operates under market conditions, without compromising national sovereignty.
The decree will enter into force after its publication in the Official Gazette, and will be submitted to Congress for approval, as established by Law 23.696.
