MercoPress. South Atlantic News Agency

Aerolineas Argentinas announces addition of 37 jetliners

Executives of former state carrier Aerolineas Argentinas announced ambitious plans Thursday to invest at least US$800 million (?629 million) to add 37 planes to its active fleet by 2009.

The plan was announced after a meeting between Aerolineas executives and President Nestor Kirchner at Government House. Government officials, meanwhile, issued separate statement saying the investment was expected to total US$1 billion (?790 million) over three years although. Specific financing details weren't released.

"We have developed a very aggressive plan for the improvement and expansion of services," Esteban Lucio Maccari, the Aerolineas general manager, announced at a follow-up news conference.

He said plans called for gradually bringing on new planes, starting with 14 aircraft in the rest of 2006, to reach a total fleet of 54 operating planes by year's end.

He added highlights of the expansion plan included the expected addition of an Airbus 340-200 and a Boeing 747-400 in early 2007 as the company increasingly targets international long-haul routes.

He said the company hopes to have 67 active aircraft by December 2007 before adding the rest over 2008.

Maccari also said the company was seeking to reincorporate a direct Buenos Aires-New York flight, among other international routes.

The moves come after announcement last month that former Aerolineas president Antonio Mata had left the carrier in the wake of months of labor turmoil, selling his 30 percent stake.

Occasional strikes sporadically stranded thousands of air travelers until a 19 percent pay increase was awarded in May.

The Argentine government announcement in August a two-step rate hike of some 20 percent for domestic airfares. Authorities said the increases were needed to offset rising labor and fuel costs.