Argentina's Milei plans to privatize state airline by decree

(Reuters) - Argentina's President Javier Milei intends to sign a decree next week aimed at the privatization of flag carrier Aerolineas Argentinas, said presidential spokesman Manuel Adorni.

WHY IT'S IMPORTANT

Milei says the current structure of Argentina's largest airline is bloated and is costing the country too much. His efforts to trim costs have prompted fierce protests by unions.

KEY QUOTE

"Since its re-nationalization in 2008, state subsidies to cover the company's deficits have topped $8 billion," Adorni said in a press conference on Friday.

CONTEXT

Economist and former media pundit Milei came into office in December vowing to take a chainsaw to the state budget, overturn a deep fiscal deficit and rein in triple-digit inflation.

His previous push to privatize the airline was removed from the text of an omnibus bill passed this year by Congress.

BY THE NUMBERS

Adorni said Aerolineas currently employs 1,204 pilots to fly 81 planes, or nearly 15 pilots per plane.

He had said earlier in September that Aerolineas had trimmed its total workforce by 1,500 employees in recent months.

WHAT'S NEXT



The decree could allow Aerolineas to take steps toward privatization such as hiring banks or sounding out potential buyers, a company source said.

However, Congress could still override Milei's decree, as it has done several times before. Milei's libertarian party only has a small number of seats in the legislature, though he has won over allies from the main conservative bloc.

Source: Investing.com