MercoPress. South Atlantic News Agency

Aerolíneas Argentinas makes a profit.

Spanish owned Aerolíneas Argentinas expects to end 2003 with a considerable profit, “quiet an event”, according to Mr. Antonio Mata, president of the company's Executive Committee.

"Aerolíneas finished the first half of 2003 with a 9 million US dollars profits compared to a 58 million US dollars loss in the same period last year", said Mr. Mata who revealed that the company's revenue jumped 82%, from 159 to 289 million US dollars.

However this positive comeback can be partly explained because the first six months of 2002 were possibly the worst for the Argentine air industry ever, and several competitors ended bankrupt leaving Aerolíneas with 90% of the domestic market.

"We'd love to fly only the tourist routes but Aerolíneas is more than a tourist company and has other responsibilities. We're no monopoly, the other companies abandoned", said Mr. Mata arguing that "we've even contracted 531 more staff".

The encouraging outlook for Aerolíneas according to Mr.Mata that includes an annual profit estimate of 25/30 million US dollars in 2003, also contemplates the incorporation of eight new aircrafts, five Boeings 737, three Airbus 300 and one Boeing 747.

"Beginning November we're planning more flights, a daily to Miami; one more to Mexico; ten weekly to Madrid plus an overnight, and three to Sydney", revealed Mr. Mata.

Apparently Aerolineas will be incorporating several minor associates who will hold less than 20% of the company's share package. "They come from other industries and in no way are competitors, but will help with investment and ideas".

When asked about the Lafta project (the government created airline from bankrupt companies), Mr. Mata described it as an "electoral compromise" with an "uncertain future", which causes "no tension to Aerolíneas".

Mr. Mata was particularly critical of the current Argentine Commercial Air transport Deputy Secretary and former union leader Ricardo Cirielli whom he accused of having been involved in illegal actions while in Aerolíneas, "a company he doesn't know since he never worked for the company".

However, contrary to other Spanish businessmen Mr. Mata praised Argentine President Nestor Kirchner during his recent meeting in Madrid with Spanish investors.

"I think it was a very realistic interview; the president was in no way demagogic. He talked about the real Argentina, not he imagined Argentina, and he set the rules of the game very clearly. Something we were longing for all the time", concluded the Spanish businessman.