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“Re-Argentinization” of Aerolíneas agreed with Spanish group

Monday, May 5th 2008 - 21:00 UTC
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The Argentine government and local investors will recover almost 65% control of Aerolineas Argentinas currently belonging to the Spanish tourism group Marsans, according to a brief announcement from the company's spokesperson.

"Gonzalo Pascual, head of Marsans and the Argentine government have reached a preliminary agreement. Mr. Pascual is expected again in Argentina to continue negotiations", said the spokesperson in Buenos Aires. According to the understanding Marsans will retain 35% of the Argentine flag air carrier stock and will sell 60% to a group of Argentine investors and the Argentine government, which will see its share increase from 5 to 20%, a decision which had been anticipated by the Kirchner administration some months ago. The group of private investors is expected to acquire 35% and the remaining 10% will be distributed between provincial governments and Aerolineas staff, 5% each. The preliminary agreement outlines the new structure of Aerolineas Argentinas which Marsans apparently accepted to "Argentinize" to its maximum possible, as it was announced last April 17 by spokespersons for Marsans in Madrid. According to Buenos Aires media reports the group of Argentine private investors includes Juan Carlos Lopez Mena who owns Buquebus, the ferry company that links Buenos Aires with Montevideo, Colonia and Punta del Este. Another possible candidate is the head of an Argentine bank, but no further names have been disclosed. If the Aerolineas Argentinas deal finally is confirmed, it would mean another step in the Kirchner's administration policy of "Argentinizing" public utilities or companies with the country's colors as has happened with some of the water works, a percentage of Repsol-YPF assets in Argentina, and now the country's air flag carrier. Aerolíneas was started in 1950 and in 1990 the deficit plagued company was acquired by Spain's Iberia as part of President Carlos Menem administration privatization policy, in spite of the fact the Spanish airline belonged to the Spanish government. However Iberia walked out in 1996, American Airlines moved in, but a year later the majority of the company's stock was bought by Spain's Industrial Participations Society, SEPI. On October 2001 SEPI sold Aerolineas to the Marsans Group and Air Plus Comet, with Antonio Mata as CEO. But in August 2006, Mata sold his share to Pascual & Diaz. The Marsans group which is primarily a tourism operator currently owns Aerolineas Argentinas, Air Comet, Pullmantur and Austral. The Argentine air flag carrier has a fleet of 65 aircrafts and dominates Argentina's domestic market plus flying to Madrid, Barcelona and other European and Latinamerican cities. However for over 18 months she has been exposed to serious labor conflicts with the different airline unions. Coincidentally one of the heads of the Kirchner administration civil air transport office is also member of Aerolineas Argentinas union. Furthermore it was only a month ago that domestic air fares frozen since the 2002 melting of the Argentine economy, were allowed to be increased 18%.

Categories: Politics, Argentina.

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