Latinplane From United States of America, joined Dec 1999, 2738 posts, RR: 14 Posted (14 years 5 months 2 days 1 hour ago) and read 1304 times:
According to some early news by eco (A mexican spanish news channel) The spanish gov. has decided to inject fresh new capital of $208 million dollars into debt ridden Aerolineas Argentinas.
This will allow Aerolineas Argentinas to continue operating and avoid closure of operations until september, when the board of directors will meet again to present their plan of re-structurisation of the airline.
It seems like the Spanish gov. does not want to have their hands full of blood like they did with the VIASA case back in 1997. However, if Aerolineas continues to operate like it is doing, it will loose another $150 million dollars this year which will whipe out any cash it has left and will need another investment soon.
Avia_Arg From , joined Dec 1969, posts, RR:
Reply 4, posted (14 years 5 months 2 days ago) and read 1166 times:
It's true and can be confirmed. You can read about it in La Nacion - online or Clarin. Like Latinplane said Spain doesn't want the Viasa fiasco revisited.
I for one am glad that they are working on saving AR. With unemployment being as high as it is now AR's closing would be even more devastating to our economy.
So until September AR will be flying. Now as far as the "if Aerolineas continues to operate like it is doing" should more like if Iberia continues to operate Aerolineas like it is doing....yes they will continue to loose $$. So I hope things change.
Latinplane From United States of America, joined Dec 1999, 2738 posts, RR: 14
Reply 5, posted (14 years 5 months 1 day 11 hours ago) and read 1146 times:
I'm pretty sure that you have all confirmed my early news about the Aerolineas Argentinas situation.
Something interesting to note is that on CNN en Español -Economia y finansas, reported that Aerolineas Argentinas is loosing an estimated 20 million dollars a month. The 208 million dollars injected to Aerolineas will only last them till September if they don't reach the accords with the employees of salary cuts, lay offs of 20%, fleet rationalisation, and route rationalisation.
The most interesting thing I found was that an Argentinian analyst predicts that Aerolineas Argentinas will not make it no matter what, and the reason is that American Airlines is not participating and has lost total faith in Aerolineas. It seems like American Airlines will not coopearate and sees no future in Aerolineas Argentinas. Frankly, I don't know if Iberia will be able to turn Aerolineas anytime soon. The Argentinian gov. does not like the idea of layoffs, the employees will not accept them and everything else is working totally against them. What to do?