Aerolineas Argentinas on the rise in Latin America
Aerolineas Argentinas is planning to fork over $30 million for the creation of four regional airlines to operate in Latin America. The affiliated carriers will take off to Chile, Bolivia, Paraguay and Uruguay as early as 2004, serving both domestic and international routes.
The new airlines will do away with part of Aerolineas Argentinas’ dependence on its domestic market and are expected to chip in roughly $200 million into the matrix company’s accounts.
Aerolineas Argentinas officially dropped the preventive litigation it had filed a year a half ago after a courthouse accepted the mutual agreement with the company’s 553 creditors. The approved proposal contemplates the disbursement of 40 percent of the debt in three installments, good for a 60 percent off the total indebtedness of $605 million.
“Despite the hardships the global aviation market is going through, Aerolineas Argentinas –through a highly competitive strategy- will close the year 2002 with more than 4.2 million flown passengers,” the company stated in a press release.
The company and its affiliates –owned by Spanish tourist group Marsans- estimate around 35.6 and 47.5 million dollars worth of earnings this year, the group’s chairman Antonio Mata said yesterday.
The forecast matches a benefit increase of three to four percentage points in operations that would render in $1.2 billion, Mr. Mata explained during a news conference in which he mapped out his company’s business plan.
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In Mr. Mata’s opinion, Aerolineas Argentinas will wrap up 2003 in the black for a second year straight after the company and its affiliates warded off bankruptcy thanks to Marsans’ buyout back in October 2001. This time up, the Argentine air carrier expects to transport 5.6 million passengers with an occupancy rate of at least 70 percent of their total plane seats, compared to 72 percent the company chalked up last year.
