Argentinian President Javier Milei is set to sign a decree aimed at accelerating the privatisation process of the country's flagship state-owned carrier, Aerolíneas Argentinas. The decree, announced by Presidential Spokesperson Manuel Adorni, will facilitate the ongoing congressional debate to formally declare the airline “subject to privatisation,” as permitted by Article Nine of the State Reform Law.
The decree will be published in the Official Gazette, after which the matter will go through Congress for further deliberation. This move comes as the Milei administration has begun negotiations with neighbouring countries' companies to potentially take over Aerolíneas Argentinas' domestic flight operations.
Adorni highlighted the chronic financial issues faced by Aerolíneas Argentinas, attributing its deficit to “disastrous management by populist governments.” Since its nationalisation in 2008, the airline has received over US$8 billion in state contributions. The government argues that privatisation is necessary to prevent further strain on public resources and to achieve fiscal sustainability.
The announcement has sparked tension with aviation unions, who have been staging strikes demanding better pay and opposing the proposed sell-off. Union representatives claim the privatisation will result in job losses and deteriorating working conditions.
Adorni further pointed out the airline's staffing inefficiencies, noting that Aerolíneas Argentinas has 1,204 pilots for its 81 active planes—an average of almost 15 pilots per aircraft, which he described as “excessive compared to industry standards.” He also compared the airline's staffing levels to regional competitors, stating that Aerolíneas Argentinas has an average of 125 employees per aircraft, while Brazilian low-cost airline GOL and Panamanian airline Copa have 97 and 70 employees per aircraft, respectively.
The Milei government's efforts to privatise the airline reflect a broader ambition to reduce the size of the state and cut down on public spending, a stance that has been central to Milei's administration since he took office in December.
