MercoPress. South Atlantic News Agency

Aerolineas Argentines, “The Ghost of VIASA?”

The Aerolineas strike, which began on the last Tuesday, grounding all of Aerolineas and AUSTRAL's flights, continue at press time with no immediate sign of a solution

Technical workers, members of APTA (The Association of Aeronautical Technical Workers) launched a series of wild cat strikes and were joined by AAA (the airline's Association of Flight Engineers) to shut down the airline which carries approximately 60% of the domestic market. While LAPA, DINAR and Southern Winds have all added service domestically and the "Air Bridge" between Buenos Aires and Montevideo, and are thus able to take care most of the traffic, during the off season, will become a mayor problem if not resolved by next month when travel season demand could far exceed the capacity.

At the same time, international service was being provided exclusively by U.S. and other international carries (some of whom are refusing to accept endorsements) and is also a mayor ongoing problem. According to press statements by SEPI, which is the mayor stockholder of the airline it plans to implement the further headcount reduction for the total of 1.370 from the 700 already negotiated. In the same statement the spokesman for SEPI stated that "There is still to implement "Plan Director" (which means reduced flying, returning aircraft, renegotiating labor contracts and debt reduction over three years)".

In other press statement , SEPI blames American Airline's so-called administrations for most of the airline's current problems, which is somewhat questionable since Spain has had control of the airline since it was privatized in 1990. According to sources in Spain, SEPI is prepared to shut down the airline and withdraw its financial support which is running at some $ 30 million monthly.

La Nación recently raised the specter of the VIASA grounding in 1997 under similar circumstances. The Argentine Labor Minister has been trying to mediate a solution and there is a possibility that government will step in to avoid the permanent shutdown of the two airlines, which are considered essential in Argentina

Source AvNews