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Aerolineas Argentinas could become profitable in four years time

Thursday, September 22nd 2016 - 10:46 UTC
Full article 13 comments
Aerolineas have cut non operational costs and increased revenue in the last nine months, but losses this year could reach a billion dollars Aerolineas have cut non operational costs and increased revenue in the last nine months, but losses this year could reach a billion dollars
“We had more staff than what we needed. The challenge was that we did not know exactly where those surplus employees were” said CEO Constantini. “We had more staff than what we needed. The challenge was that we did not know exactly where those surplus employees were” said CEO Constantini.

Aerolineas Argentinas CEO revealed that the flag-carrier is increasing passenger numbers and could become profitable in four years but losses keep piling, an estimated one billion dollars this year, which comes upon a one to two million dollars daily losses during most of the decade.

 “We have cut non operational costs and increased revenue in the last nine months, sales are up 10% this year and Aerolineas carried a record million passengers in July, up 13% over a year ago”, said CEO Isela Constantini, who also admitted the one billion dollars losses in twelve months.

In an interview with The Wall Street Journal Ms Constantini said Aerolineas Argentinas acknowledged that the airline was missing some basic elements of any normal company such as a budget, targets and performance and sales.

“We had more staff than what we needed. The challenge was that we did not know exactly where those surplus employees were” said Constantini.

The CEO also mentioned that cutting costs was also quite a challenge since the previous administration “did not have a cost knowledge, there was no revenue culture”.

Admitting that it could save money, “but privatizing Aerolineas Argentinas would be like trying to privatize the Argentine football national team, it's highly sensitive, all Argentines feel Aerolineas belongs to them”.

Under the previous government of president Cristina Fernandez, Aerolineas was re-nationalized, the number of flights and passengers carried doubled, punctuality improved, staff was increased by 3.000 and subsidies (billed to tax payers) climbed to 5bn dollars, according to Transport minister Guillermo Dietrich.

President Macri's administration believes that Aerolineas Argentinas gobbled more funds than what was invested in education in some of Argentina's poorest provinces.

Categories: Economy, Tourism, Argentina.

Top Comments

Disclaimer & comment rules
  • Kanye

    “Aerolineas Argentinas acknowledged that the airline was missing some basic elements of any normal company such as a budget, targets and performance and sales”

    Evita K added 3,000 employees, and the company spokesperson says they don't know what those employees did.

    “President Macri's administration believes that Aerolineas Argentinas gobbled more funds than what was invested in education in some of Argentina's poorest provinces.”

    Mr.Massot;

    Sounds like Evita K cared more for La Campora Noqui's than child education and the poor.

    Only Evita's “elite” could afford flights, but they were well served by the heavily subsidised airline.

    Sep 22nd, 2016 - 02:30 pm +1
  • Briton

    Is it true, that the passengers have to push it down the runway, to save fuel,

    just asking like.

    Sep 22nd, 2016 - 07:30 pm +1
  • Marti Llazo

    @4 “Would any non-Argentine actually fly on this carrier?”

    Actually, yes. The service is decent even if the management is (was) corrupt. But then LAN Chile wasn't exactly the portrait of good behaviour, either.

    Big dispute going on right now in some corners because Aerolíneas is buying their fuel from Shell instead of YPF and that has gotten the Kirchnerist knickers all in a knot.

    Sep 22nd, 2016 - 10:13 pm +1
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