MercoPress. South Atlantic News Agency

Mrs. Kirchner denies rift with Spain over air flag carrier

Moratinos denied that the issue of Aerolíneas Argentinas had been debated

Argentine president Cristina Fernandez de Kirchner underlined on Monday the close relations with Spain and vehemently denied tensions over the situation of Aerolíneas Argentinas whose major shareholders are Spanish and allegedly room is being made for Argentine investors to join.

In the context of the opening of the "Women and the Alliance of Civilizations" conference, and in the presence of Spanish Foreign Affairs Minister Miguel Angel Moratinos, Mrs. Kirchner denied that Spanish Vice President María Teresa Fernández de la Vega wouldn't be visiting Argentina because she was irritated by the situation of the Argentine flag air carrier. "How can they publish things like that? How could anyone suppose that a friendship, a relationship of such depth as that between Argentina and Spain could be damaged or mutilated by attitudes like this?" Kirchner asked, adding that Fernández de la Vega had telephoned her to deny that there was any truth in the story and to express her "indignation" that it had been published. The Argentine president rounded off her remarks by saying that she and the Spanish leader are "united, above all, by the same concept of institutional responsibility." Spanish Foreign Minister Miguel Angel Moratinos later denied that the issue of Aerolíneas Argentinas had been debated with Argentine authorities. "It is not the intention of my government to exert pressure on the Argentine authorities regarding the case of Aerolíneas Argentinas," Moratinos told a press conference also attended by his Argentine counterpart Jorge Taiana. "This is a business matter, Aerolíneas Argentinas has its own contacts with the Argentine authorities," he said, adding that the legal situation of the beleaguered air carrier had not been the subject of debate, a statement by Taiana confirmed. Privatized during the Menem administration, Aerolíneas Argentinas, once controlled by the Spanish airline Iberia, is now run by the Spanish company Marsans. Moratinos was quick to remark that, "On my first visit to Argentina, four years ago, the same issue cropped up. Through the years, we have all seen that relations have improved, with growing friendship and cooperation." "The relations between the governments of Spain and Argentina have never been so intense and positive like now," he concluded. Aerolíneas Argentinas has been plagued with labor strife, salaries disputes which have hurt its reputation and profitability particularly because of frozen air rates. However in early April domestic flight rates were increased 18%, and according to the Argentine press it is part of a greater deal which, as happened with Repsol YPF interests in Argentina, could be opening the way for Argentine investors to take over a percentage of the air carrier. The businessmen involved are described as having close links with the Kirchners.