Argentina’s State-Run Airline Tries Evolving for a Fragile South American Market
Photo Credit: Aerolinas Argentinas is a state-controlled airline that has had some difficulty competing with non-subsidized airlines. Pictured is one of the carrier's Boeing 737s. Aerolineas Argentinas
Skift Take
Aerolíneas Argentinas has focused heavily on improving its efficiency and customer service in a more competitive aviation industry, but its strategy could change depending on the outcome of Argentina’s upcoming national elections.
Business and politics in Argentina are inextricably linked, and aviation is no exception.
In the nearly four years since business-friendly conservative President Mauricio Macri took office, the country’s airline industry has become more competitive. Low-cost entrants including Flybondi, Norwegian Air Argentina and JetSmart have burst onto the scene offering lower prices on domestic routes, and the government is picking up the tab for multi-million dollar infrastructure improvements at main airports. In July, Argentina’s airlines welcomed an all-time monthly record of 1.5 million passengers flying within Argentina—a 61 percent increase compared with four years earlier.
To keep pace, flag carrier Aerolineas Argentinas has been making its own changes. The airline — whose leadership is influenced by the same administration pushing for a more competitive airline industry — has made strides to become more efficient, customer-focused and financially sound. However, amid the co
