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Aerolineas costing Argentina 1 million USD daily to operate
Mercopress
September 05, 2008

The Argentine Congress authorized this week the purchase of the country's air flag carrier Aerolineas Argentinas and subsidiary Austral which are under the control of Spanish tourism group Marsans. But the process is far from over and operational debts keep mounting.

The bill was passed in the Senate by 46 positive votes against 21 negative but does not confirm whether the State is going to pay the price of the shares or whether the airlines will be expropriated, as Argentine Transport Secretary Ricardo Jaime had expected. However the bill named the Cassation Court to establish assets value for which it has a

60 day deadline dating back to July 17. This week it was revealed by members of the opposition that the money loosing and debt strapped airlines have cost the Argentine Treasury 120 million US dollars since the government took over daily operations last July, almost a million US dollars per day.

Argentina's powerful trade unions umbrella grouping CGT secretary Juan Bel n said the law is positive and that it ensures employees' jobs. Over 9,000 people currently work in the airlines. Aeronautical unions have for long supported the re-nationalization, often complaining against Marsans over salaries, labour conditions, service delays

and irregularities. APLA pilots' union boss Jorge P rez Tamayo said the law means recovering part of the national heritage. Cassation Court head Daniel Mart n said Marsans has been providing inaccurate information regarding Aerol neas

Argentinas assets, since many differences were spotted in the Marsans official assets report.

"Marsans said there are 85 aircraft in the airlines fleet, but actually 34 are serviceable and 55 other are not in operation," Mart n told Congress' State Reform Committee when explaining the Court's method to evaluate the worth of the airlines' assets. Mart n said help had been requested from the UTN Technological University, UBA University of Buenos Aires'Economics School and DNA Aeronautical Department, in order to define the value of the companies' assets.The Court ascertained, according to figures issued by the DNA, that Aerol neas has 89 aircraft, and that two planes -Marsans had previously acknowledged to owning 85 - are operated by Chilean airline Aerol neas del Sur, another was seized in M xico for transporting drugs, and the fourth is about to be sold. Mart n added that Marsans is not willing to co-operate when it comes to providing information related to these matters.Therefore, the Court has ordered it to supply all codes and passwords to the company's computer system. Mart n said that inspections will be carried out in Aerol neas Argentinas' warehouse, where the aircraft not serviceable are kept.

"The assets are overestimated, some have been overpriced" he added. Argentine Congress opposition members said the estimated 890 million US dollars debt incurred by the company is bound to be paid by society as a whole.According to the original record of proceedings signed by the Argentine government and Marsans last July an

independent Assessment Tribunal was commissioned to establish the value of the airlines assets while a private consultant (Credit Suisse) would do a second appraisement.

Based on these two reports the sides would then decide the final price. If no agreement was reached a third independent appraisal would establish the final value.

However the bill approved commits the Cassation Court to establish the value of Aerolineas assets.