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dcajet
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Aerolineas Argentinas to absorb Austral Lineas Aereas

Tue May 05, 2020 4:54 am

In a email sent to employees of AR & AU, the Group's CEO announced that Aerolineas will absorb Austral Lineas Aereas. AU operates 26 E190 jets and flies mostly within Argentina and neighboring countries. Austral was founded in 1957 and has been part of Aerolineas since 1991, run as a separate operation with a high degree of duplication.

AR will also spin off its technical division as a separate unit and create a dedicated cargo unit (as it had up to 1990). The email also mentions that the airline intends to renegotiate its labor contracts to make them competitive with other airlines in the region.

Image
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panam330
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Re: Aerolineas Argentinas to absorb Austral Lineas Aereas

Tue May 05, 2020 2:17 pm

Tip of the iceberg, but good to see it happen. I’m pretty sure we can all surmise that any setup like this (eg. SU and Rossiya/Pobeda, and I’m sure others I’ve missed) will lead to some consolidation to save as much money as possible. Or reduce the cash burn, in most cases.

As an aside, what will become of AU’s 220 purchase agreements? Were they ever firmed?
 
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mercure1
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Government seeks to merge Aerolineas Argentinas and Austral

Tue May 05, 2020 5:07 pm

Argentine government is seeking to merge Aerolineas Argentinas and Austral into a single carrier.

While Austral is 100% owned by AR and commercially integrated largely, it still maintains its own crews, ground staff, maintenance, and administrative overhead.

The merger would hopefully allow the creation of a new unified company and take advantage of efficiencies gained by reducing duplication.

Government announced that it will merge Aerolineas Argentinas and Austral
https://aerolatinnews.com/destacado/gob ... y-austral/


Now wonder what the trade unions think of this :scratchchin:
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dcajet
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Re: Aerolineas Argentinas to absorb Austral Lineas Aereas

Tue May 05, 2020 6:48 pm

panam330 wrote:
Tip of the iceberg, but good to see it happen. I’m pretty sure we can all surmise that any setup like this (eg. SU and Rossiya/Pobeda, and I’m sure others I’ve missed) will lead to some consolidation to save as much money as possible. Or reduce the cash burn, in most cases.

As an aside, what will become of AU’s 220 purchase agreements? Were they ever firmed?


I am not aware of any purchase agreement for any new, larger aircraft for AU. There were talks last year with Airbus, Boeing and Embraer but the previous administration paused them due to disagreements with the pilots' union.

mercure1 wrote:
Argentine government is seeking to merge Aerolineas Argentinas and Austral into a single carrier.

While Austral is 100% owned by AR and commercially integrated largely, it still maintains its own crews, ground staff, maintenance, and administrative overhead.

The merger would hopefully allow the creation of a new unified company and take advantage of efficiencies gained by reducing duplication.

Government announced that it will merge Aerolineas Argentinas and Austral
https://aerolatinnews.com/destacado/gob ... y-austral/


Now wonder what the trade unions think of this :scratchchin:


AU & AR have different pilots' unions. Merging their seniority lists is going to be tough, as well as merging the 2 unions.
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dcajet
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Re: Aerolineas Argentinas to absorb Austral Lineas Aereas

Tue May 05, 2020 6:51 pm

Well, that didn't take long. Austral pilots declare a "state of alert" after the announcement of the merger with Aerolineas Argentinas.

https://aviacionline.com/2020/05/piloto ... rgentinas/
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oldJoe
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Re: Aerolineas Argentinas to absorb Austral Lineas Aereas

Tue May 05, 2020 10:17 pm

dcajet wrote:
Well, that didn't take long. Austral pilots declare a "state of alert" after the announcement of the merger with Aerolineas Argentinas.

https://aviacionline.com/2020/05/piloto ... rgentinas/


The bigger question for Austral pilots : Are I`m jobless tomorow ? In this crisis ther`s a big chance of possibility to sit simply at home doing nothing at all. Expect this pilots get paid for doing nothing at all ?
Strange !
 
planeguy
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Re: Aerolineas Argentinas to absorb Austral Lineas Aereas

Tue May 05, 2020 10:40 pm

I've always wondered why they maintained two separate operations and brands. It reminds me of how Avianca used to own and operate SAM independently. Well, if it leads to more efficiencies and synergies, then all the better.
 
pipeafcr
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Re: Aerolineas Argentinas to absorb Austral Lineas Aereas

Tue May 05, 2020 10:50 pm

planeguy wrote:
I've always wondered why they maintained two separate operations and brands. It reminds me of how Avianca used to own and operate SAM independently. Well, if it leads to more efficiencies and synergies, then all the better.


Austral was more of a regional venture, unlike SAM which at the time was directly competing with Avianca on key routes. Avianca also recently added a new airline (Avianca Express) to take over regional routes and offer services between secondary and tertiary destinations in Colombia, something that Austral was also doing in Argentina.
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argentinevol98
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Re: Aerolineas Argentinas to absorb Austral Lineas Aereas

Tue May 05, 2020 11:00 pm

I foresee this going poorly. AU/AR union issues have been deep and long-running and I don't see the either pilot group giving an inch here. It's going to be interesting to see what political allies within the government AU pilots can muster. Not to go too much into something better suited for non-av, but there exists a chance this could create or expose some internal fissures in the government.If AU crews can get some prominent K figures to back their side that could kill the merger. If the government and its allies are unified though it stands a decent chance of taking place. That, however, doesn't mean that it will go through smoothly even in the event that the merger is confirmed. I have family that used to work at AR that now stories of AR/AU pilots actually fist-fighting along with plenty of screaming matches in airports and even aboard aircraft cabins.

I give it a 50/50 chance of actually happening. If the relationship between AR/AU were not so much a political issue (internally at AR/AU and at a governmental level) this would have happened ages ago. Either way, it will be interesting (and perhaps painful) to observe.
Last edited by argentinevol98 on Tue May 05, 2020 11:07 pm, edited 1 time in total.
"He sospechado alguna vez que la única cosa sin misterio es la felicidad, porque se justifica por sí sola"-Jorge Luis Borges
 
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DL747400
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Re: Aerolineas Argentinas to absorb Austral Lineas Aereas

Tue May 05, 2020 11:01 pm

Finally! A bit of logic and common sense out of AR and the Argentinian government.
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PA12
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Re: Aerolineas Argentinas to absorb Austral Lineas Aereas

Wed May 06, 2020 12:52 am

AU doesn’t serve any terciary city. There are a flew routes they fly between cities without flying thtough AEP or COR and some routes are the same AR flies. There are at least 10 tertiary cities that neither AR or AU or nobody else serves which have had airline service in the past and now have only bus service.
 
bkmbr
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Re: Government seeks to merge Aerolineas Argentinas and Austral

Wed May 06, 2020 12:57 am

mercure1 wrote:
Now wonder what the trade unions think of this :scratchchin:


I don't believe the unions will be that big of a hassle to the Argentine government. The president is a left-wing president and Cristina Kirchner is the actual vice president of the country. The unions have a close relation with the peronistas and this may present a challenge to the management team at the company but politically is not so complicated to be resolved.
 
AR385
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Re: Aerolineas Argentinas to absorb Austral Lineas Aereas

Wed May 06, 2020 2:28 am

Good luck implementing this plan. Unions in both carriers are going to raise a ruckus.
 
dcajet
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Re: Aerolineas Argentinas to absorb Austral Lineas Aereas

Wed May 06, 2020 7:13 pm

oldJoe wrote:
dcajet wrote:
Well, that didn't take long. Austral pilots declare a "state of alert" after the announcement of the merger with Aerolineas Argentinas.

https://aviacionline.com/2020/05/piloto ... rgentinas/


The bigger question for Austral pilots : Are I`m jobless tomorow ? In this crisis ther`s a big chance of possibility to sit simply at home doing nothing at all. Expect this pilots get paid for doing nothing at all ?
Strange !


As unreasonable as it seems, the reaction from the AU pilots is understandable.

Their union, UALA, was born in 1986 I believe as an offshoot of the traditional local pilots' union, APLA, which is in essence run by AR pilots. They were bitter enemies until 2016 when the Macri administration allowed new competition and with it, the bete noir for unions, the low cost airlines. All of a sudden, UALA and APLA found a common cause to rally against and they became allies.

But times at APLA are also difficult. It has become extremely politicized and have been seen for years now as an appendage of peronism/kirchnerism. LATAM Argentina pilots left last year to form their own union and the low cost airlines (Flybondi, Norwegian and JetSmart) snubbed APLA and each formed their own union (one for the whole airline, across all sectors). So their membership is down and with it, union fees. Time to bring back the UALA folks before closing the gate.

The logic of this merger makes total sense and should have been done years ago. But for internal political and labor reasons, it has been punted for years. If the Macri administration would have proposed something like this between 2016-2019, the then opposition now government would have literally set the place on fire. But here we are: with the whole AR/AU costing the local taxpayer close to US$1B this year, something need to be done and yesterday's horrid ideas (a merger) end up turning into a good ones.
Keep calm and wash your hands.
 
dcajet
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Re: Aerolineas Argentinas to absorb Austral Lineas Aereas

Fri Jun 19, 2020 2:27 am

In the midst of some turbulent days for Argentina's aviation, with the indefinite suspension of flights by LATAM Argentina, Aerolineas Argentinas confirms it is going ahead with the planned merger with its subsidiary, Austral Lineas Aereas.

https://twitter.com/GaboAir/status/1273787085347074048
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mercure1
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Re: Aerolineas Argentinas to absorb Austral Lineas Aereas

Mon Oct 05, 2020 5:30 pm

Aerolineas Argentinas and Austral merger moved one step closer as an agreement was signed between pilots.

https://www.lanacion.com.ar/economia/la ... nid2468741
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dcajet
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Re: Aerolineas Argentinas to absorb Austral Lineas Aereas

Mon Oct 05, 2020 6:36 pm

mercure1 wrote:
Aerolineas Argentinas and Austral merger moved one step closer as an agreement was signed between pilots.

https://www.lanacion.com.ar/economia/la ... nid2468741


This includes a rather infrequent occurrence in Argentina: the disappearance of one union (UALA - representing AU's pilots), whose members will be now added to APLA, that represents pilots at AR. UALA was created in 1986 when AU pilots voted to leave APLA.
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dcajet
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Re: Aerolineas Argentinas to absorb Austral Lineas Aereas

Fri Nov 13, 2020 10:28 pm

Austral Lineas Aereas will be merged with Aerolineas Argentinas on December 1st, effectively ending AU's 64-year run.

Image
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dcajet
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Re: Aerolineas Argentinas to absorb Austral Lineas Aereas

Mon Nov 30, 2020 11:31 pm

A sad day today for aviation in Argentina: Aerolineas Argentinas S.A. received today its new AOC that includes all assets, fleet, maintenance license and staff of ex- Cielos del Sur SA, dba Austral Lineas Aereas, ending AU's 64 year history. Throughout its history, the following types were operated by AU:

Curtiss C46 Commando
Image

Douglas DC-6
Image

BAC 1-11-400
Image

NAMC YS-11-300
Image

BAC 1-11-500
Image

MD81/82/83/88
Image

DC-9-30
[url=https://postimg.cc/qNHRn8zT]Image


Boeing 737-200
Image

Embraer E190AR
Image

Godspeed Penguin!
Image
Keep calm and wash your hands.
 
argentinevol98
Posts: 180
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Re: Aerolineas Argentinas to absorb Austral Lineas Aereas

Tue Dec 15, 2020 7:57 pm

dcajet wrote:
A sad day today for aviation in Argentina: Aerolineas Argentinas S.A. received today its new AOC that includes all assets, fleet, maintenance license and staff of ex- Cielos del Sur SA, dba Austral Lineas Aereas, ending AU's 64 year history. Throughout its history, the following types were operated by AU:

Curtiss C46 Commando
Image

Douglas DC-6
Image

BAC 1-11-400
Image

NAMC YS-11-300
Image

BAC 1-11-500
Image

MD81/82/83/88
Image

DC-9-30
[url=https://postimg.cc/qNHRn8zT]Image


Boeing 737-200
Image

Embraer E190AR
Image

Godspeed Penguin!
Image


A sad day it was indeed! Thanks for posting.
"He sospechado alguna vez que la única cosa sin misterio es la felicidad, porque se justifica por sí sola"-Jorge Luis Borges
 
dcajet
Topic Author
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Re: Aerolineas Argentinas to absorb Austral Lineas Aereas

Tue Mar 02, 2021 2:46 am

LV-CMA is the first of 26 E-190 ex Austral to be painted in the Aerolineas Argentinas livery

Image
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