MercoPress. South Atlantic News Agency

Argentine Congress discusses Aerolineas re-nationalization

The Argentine Congress began this week to consider President Cristina Fernandez de Kirchner proposal to re-nationalize Argentina's flag air carrier Aerolineas which until last month was under the control of a Spanish group.

Transport Secretary Ricardo Jaime presented the project for the re-nationalization of Aerolíneas Argentinas before the Lower House Transport and Budget commissions, which will debate the controversial issue. Aerolineas is burdened by an enormous after being privatized and taken over by the Marsans group from Spain a few years ago. Jaime's presentation before the Lower House, open to the press, was the first step taken by the administration of Cristina Kirchner aimed at renationalizing both Aerolíneas Argentinas and its sister domestic carrier Austral. Jaime made his presentation jointly with Aerolíneas Argentinas president Julio Alak and advisors. The plan to salvage both airlines has come under fire from the Lower House opposition because the State, should a previous re-nationalization plan be implemented, would have to cancel the air carriers' outstanding debt which is estimated in almost a billion US dollars. After taking over and running both Aerolíneas and Austral, the Marsans group has been claiming financial compensation â€" a move heavily questioned by politicians and business groups. Before Aerolíneas was definitively grounded last month the Argentine government moved in, paid pending salaries, renewed the chartering of aircrafts and helped to finance fuel costs. Jorge Pérez Tamayo, president of Argentina's Airline Pilots' Association (APLA) came out in defense of the re-nationalization project, "because (the company) is broke and no-one would be willing to purchase a company gone broke". The only solution, he continued, is the re-nationalization. But the other side of the story is that Aerolíneas since the melting of the Argentine economy in 2002 has had to fly with frozen air fares and has been exposed to permanent labor strife (strikes, walkouts, delays) allegedly sponsored by the Kirchner administration, which was intent in recovering the Argentine flag carrier for Argentina be it the private sector or the government. Something similar to what has been the process with the oil company YPF which has been partly re bought by Argentine interests and several other public utilities that were under control of foreign investors. Congressional opposition claims those involved in the "recovery" of Argentine "sovereign assets" that had been privatized, have a common conditions: close friends or associates of the Kirchner family.