By Kylie Madry
BUENOS AIRES (Reuters) – The Argentine authorities printed a sweeping decree on Wednesday geared toward opening up the nation’s aviation sector, inviting international airways to enter the market lengthy dominated by state-run provider Aerolineas Argentinas.
The reform ought to increase the variety of routes, flight frequencies and produce in additional rivals, the transportation secretariat mentioned in a press release.
Carriers can now petition to function as many routes and frequencies as they need, topic to security approval, in line with the decree.
Airways additionally now have full management over how a lot they cost for tickets, the decree states, taking away a dormant regulation which allowed the federal government to set a value ground.
The administration of libertarian President Javier Milei, who took workplace in December, has tied up numerous “open-skies agreements” with different nations in latest months, permitting their airways to function home routes in Argentina beneath some situations.
Brazil, Chile, Peru, Ecuador, Panama, Uruguay and Canada have all signed agreements to date, probably opening up the Argentine market to carriers from Gol to LATAM to Air Canada.
The transportation secretariat mentioned on Wednesday that extra such agreements needs to be signed in coming months.
Aerolineas Argentinas operated 62% of home flights in Could, in line with the latest regulator knowledge out there. Trailing behind it had been native low-cost airline Flybondi with 26% of the home market and Chilean provider Jetsmart with 11%.
The state-run provider’s future stays unsure as Milei has beforehand mentioned he’ll privatize the airline. Nonetheless, a bid to take action was scrapped from an omnibus reform invoice handed by Congress final month.
Milei’s spokesman, Manuel Adorni, mentioned in an interview printed final week by a neighborhood outlet that the federal government could attempt to make some state-run firms, comparable to Aerolineas, extra worthwhile earlier than seeking to privatize them or hunt down a purchaser.
Final 12 months, Aerolineas turned a $32 million internet revenue, in line with the corporate.
Unions have closely criticized the trade reforms, arguing that the federal government is hurting Aerolineas’ operations and workers to be able to herald low-cost rivals.
Aerolineas has lower some frequencies and trimmed its workforce in latest months, in line with the unions.
