757gb
Topic Author
Posts: 374
Joined: Wed Feb 04, 2009 4:11 pm

AR Used Up 90% Of Subsidies For The Year?

Fri Aug 03, 2012 12:42 pm

Are these numbers real? The article states that the government had assigned USD 547 million, of which $475 are spent. AR would need another $ 272 million to finish the year. Are there any other sources out there with specific information on this? This article is very limited and it doesn't sound objective, so I'm not making a statement, I'm rather asking a question that maybe folks more familiar with the situation can help clarify. Thanks in advance for your input.

http://www.aviacionnews.com/blog/201...sidios-asignados-para-todo-el-ano/

Regards,
GB
God is The Alpha and The Omega. We come from God. We go towards God. What an Amazing Journey...
 
jfk777
Posts: 5830
Joined: Tue Aug 22, 2006 7:23 am

RE: AR Used Up 90% Of Subsidies For The Year?

Fri Aug 03, 2012 12:52 pm

What is the whole Argentine Government Federal Budget ? A billion USD on AR seems expensive annually.
 
Gonzalo
Posts: 1526
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RE: AR Used Up 90% Of Subsidies For The Year?

Fri Aug 03, 2012 12:57 pm

I think the rise in the daily loses from USD 2 Mill/day to USD 2.8 Mill/day is more than enough to explain the situation of AR, and I think the numbers are OK. Obviously in Argentina you have two sources for information, the loyal to the K administration, where everything is wonderful and the country is running fast to be one big power in the near future, and the opposition media outlets like LN or Clarin where the country is suffering several problems and the government is failing almost in everything... getting objective information regarding AR or the economy is not easy. Personally I choose to speak directly with some people I know from a variety of cities of Argentina ( not only Buenos Aires ), and I have to say that the reality is much more close to La Nacion or Clarin than Pagina 12 or 6.7.8., but still, my sample size is not big enough to make a definite conclusion.

In any case, be prepared to be flamed and attacked by some who can't accept any kind of criticism over Argentina.
( Probably I will be called a "hater of Argentina" just because I replied to this thread  

Rgds.

G.
Gear Up!!: DC-3 / EMB-110 / Fairchild-227 / Ab318-19-20-21 / B732 / B763 / B789
 
LVISA
Posts: 19
Joined: Wed Jun 02, 2004 10:31 am

RE: AR Used Up 90% Of Subsidies For The Year?

Fri Aug 03, 2012 1:24 pm

Quoting jfk777 (Reply 1):
In any case, be prepared to be flamed and attacked by some who can't accept any kind of criticism over Argentina.
( Probably I will be called a "hater of Argentina" just because I replied to this thread

Oh dear... If Argentina decides that they want to spend 7 billion dollars a year flying DC-3's to Greenland while employing 34 million workers, what do you care? It's not your money and you don't live there. It is up to those that pay to decide when/if they have had enough.
 
MD11junkie
Posts: 2499
Joined: Tue May 10, 2005 4:59 am

RE: AR Used Up 90% Of Subsidies For The Year?

Fri Aug 03, 2012 2:44 pm

Quoting 757gb (Thread starter):
Are these numbers real? The article states that the government had assigned USD 547 million, of which $475 are spent. AR would need another $ 272 million to finish the year. Are there any other sources out there with specific information on this? This article is very limited and it doesn't sound objective, so I'm not making a statement, I'm rather asking a question that maybe folks more familiar with the situation can help clarify. Thanks in advance for your input.
GB,
Actually that is only concerning to the budget batch assigned to AR. The assigned batch contemplates investments, operating loss AND debt relief (most of which is owed to the Government regarding pensions, health care, etc) and fuel subsidies because of flying to the south (of which LAN also gets).

That doesn't mean that AR is using more money than the year before. I've also explained this in a previous thread by Gonzalo.

Quoting MD11junkie (Reply 4):
Actually, 'the source' is not the Secretaría de Transport nor the Ministerio de Planificacion Federal e Inversiones Publicas. It is a NOG that supervises the budget execution for the fiscal year.
All the amounts are taken/mentioned in the article from a budget batch assigned to Aerolineas Argentinas. Nowhere it is said that it is to cover operational deficit.
That 64% figure is not comprised with the increase in the exchange rate. The real increase in the batch is much lower.

LN is nowhere near as exact as people who know the industry. Hell, they've even said AR was footing a bill for U$S 100000 a day in the MIA route. Laughable. That's serious, sure.


Saludos,

[Edited 2012-08-03 07:47:12]
There is no such thing as Boeing vs Airbus as the queen of the skies has three engines, winglets and the sweetest nose!
 
757gb
Topic Author
Posts: 374
Joined: Wed Feb 04, 2009 4:11 pm

RE: AR Used Up 90% Of Subsidies For The Year?

Fri Aug 03, 2012 3:44 pm

Quoting MD11junkie (Reply 4):
That doesn't mean that AR is using more money than the year before. I've also explained this in a previous thread by Gonzalo.

Thanks so much for your input MD11junkie. I do remember seeing your post in Gonzalo's thread. To be honest it was on one of those days when I didn't have much time and I didn't quite understand your point. Here it seems clearer. So what you are saying is that we are not talking necessarily about operational deficit if I'm reading things right.

It would be great to find a source of clear information on this but it's very difficult (after 5 years of trying to follow up on Pluna I should have learned he he).

Regards,
GB
God is The Alpha and The Omega. We come from God. We go towards God. What an Amazing Journey...
 
goosebayguy
Posts: 548
Joined: Fri Sep 25, 2009 1:12 pm

RE: AR Used Up 90% Of Subsidies For The Year?

Fri Aug 03, 2012 4:10 pm

As Greece has found one day the bill becomes due. With Argentina you can always tell when they're in trouble. Their leaders switch attention to the Falklands and that's been happening an awful lot recently.

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