Argentine government to buy out airlines

[Judi Lynn]

Source: Associated Press

Argentine government to buy out airlines
July 21, 2008

BUENOS AIRES, Argentina—Argentina's government is planning to buy airlines Aerolineas Argentinas and Austral from a Spanish travel conglomerate for an undisclosed price.

Planning Minister Julio de Vido says he and executives from Spain's Grupo Marsans signed a deal Monday giving the government control of the airlines within 60 days.

He says their assets and liabilities are being assessed to determine a price. Transportation Secretary Ricardo Jaime last week said their combined debt was US$800 million.

The carriers run more than 85 percent of domestic Argentine flights.



Read more: http://www.boston.com/news/world/europe/articles/2008/07/21/argentine_government_to_buy_out_airlines/

[Runcible Spoon]

1. I hope the quality stays the same.

Aerolineas and Austral are such wonderful airlines. I've never flown anything in the US that was actually a pleasure, but the Argentinian airlines are so relaxing. AND all the wine or beer you can drink for free! :evilgrin:

Good thing Cristina's government has the money on hand to bail these airlines out. Here's to hoping labor issues are addressed fairly too!

[musiclawyer]

3. The end of the big private airlines?

It makes you wonder if this is the end of private enterprise in connection with air travel. Airline travel, while not as important as in year's past because of the internet, is still vital to the economies of many countries; they can't afford to have them run by short term thinkers. Flying has to become much more expensive in the short run, absent new technologies. But one would hope that it does not revert back to the 50's when only the very well-to-do could fly.

[Vidar]

2. Bravo Argentina!