Aviation Argentina's president wants to privatize airline
Argentine President Javier Milei has announced the first steps towards privatizing the country's most important airline. The reason given was that the airline had not made a profit since 2008.
28.09.2024, 03:09
28.09.2024, 03:10
SDA
The presidential office explained on Friday (local time) that the government had decided to clear the way for the privatization of Aerolineas Argentinas. Another reason was that the airline was being "harassed" by the union, "whose only priority is to maintain its privileges".
The statement came after a court in Buenos Aires suspended a decree by Milei on Thursday, with which the right-wing populist wanted to restrict the right to strike in air transport. The decree stipulated that airlines must maintain at least 50 percent of flights in the event of a work stoppage. However, according to a statement from the airline pilots' association, the court declared the order unconstitutional.
The decision is the latest legal setback for Milei's reform plans. Since taking office in December, the self-proclaimed "anarcho-capitalist" has embarked on a drastic austerity drive to tackle chronic inflation and decades of government overspending.
Cost-cutting meets with resistance
According to Milei, Aerolineas Argentinas is costing the state too much money. However, the president's efforts to cut the airline's costs have met with fierce resistance from the unions.
Last month, pilots and crew walked off the job for two days each to push through wage increases of up to 35 percent in the face of high inflation. Hundreds of flights were affected by the strikes.
Milei, who is considered an admirer of former US President Donald Trump, won the presidential election last November. When he took office, he announced a "shock therapy" for Argentina, which he said he would use to get a grip on galloping inflation and boost the economy.
