MercoPress. South Atlantic News Agency

Aerolineas Argentinas expansion program

Aerolíneas Argentinas, now Spanish owned, will be investing 558 million US dollars in the next five years to renew its fleet, vice-president Jose Maria Llodrá announced in Buenos Aires.

"Between next November and December, and 2009 the company will incorporate 49 new medium and long range aircraft replacing outdated units. This strategic plan has been possible after reaching a leasing agreement with US builder Boeing", highlighted Mr. Llodrá.

The agreement involves 32 new Boeing 737/300 and Boeing 737/500, and 17 Boeing 747/400 which will enable Aerolineas to increase 50% its current offer of flights, both regionally and internationally.

Some of the replaced aircraft will be sent to current or future Aerolíneas affiliates in Bolivia, Chile, Paraguay and Uruguay. The rest of the units will be sold internationally.

Mr. Llodrá also announced that in the very near future, Aerolíneas shares will be traded in Buenos Aires stock market, for which negotiations are advancing following the agreement reached with creditors.

However Mr. Llodrá pointed out that "we're not contemplating financing the current expansion with sale of shares; the renovation is done with our own resources".

Aerolíneas Argentinas is under the control of tourist industry operator Marsans, one of the largest and most prestigious in Spain.

"When we begin operating in the Buenos Aires stock exchange, this will give us a strong boost and we will be feeling more optimistic and could then address further expansion projects with Boeing", indicated Mr. Llodrá.

Boeing Latinamerica sales vice-president John Wojik stressed the US builder was "proud" of its long standing link with Aerolineas which she praised for having "successfully overcome" the recent downfall of the air industry.

The Argentine flag carrier has been linked to Boeing since 1966. The company was taken over by Marsans in 2001 when it was sold by the Spanish Industrial Participation institute.