Argentina Eyes Airline Deregulation to Boost Competition

The Argentinian government proposes deregulating the airline industry to enhance competition and lower ticket prices. With current discussions in Congress, the aim is for a more open market, aiding in connectivity and reducing state financial burden on Aerolíneas Argentinas.


Argentina Eyes Airline Deregulation to Boost Competition

The Secretary of Transport of Argentina, Franco Mogetta, expressed the need to promote competition in the air sector to reduce costs for passengers. He emphasized that air deregulation has already begun to yield positive results by providing Argentines with more options for traveling both within the country and in the region.

Mogetta pointed out that tariff barriers have been removed, public hearings for new routes have been eliminated, the entry of new airlines has been accelerated, and cooperation between companies has been regulated, among other measures. He stated that the intention is not to attack Aerolíneas Argentinas, but to allow it to compete on equal terms, considering that it has received significant state assistance.

The Chamber of Deputies will resume the debate on the bills to privatize Aerolíneas Argentinas. The Government's goal is to end the strikes that affect passengers and discipline the unions in the aviation sector. Despite union resistance, the ruling party has parliamentary support to move forward with the privatization.

The aim is to sell the airline's assets to private operators in a process that will take several months. Different projects are being considered to carry out the privatization, each with its own specifics regarding the control of the process. Ultimately, the intention is to create a competitive regime that benefits passengers and promotes greater connectivity in the country.