"The tariff war is in check with the airlines" …

"We are struggling to track the payment of suppliers, the payment of wages and accounts this year will be worse than last yearwhen we need $ 200 million from the state to continue working; This year we will need more. "Sharp, direct, without hiding the consequences of a policy that has blocked the flag line, but without mentioning this reality, the president of Aerolineas Argentinas, Luis Malvido, acknowledged the harsh situation of the company. The public company badumes the consequences of the benefits that the Cambiemos government has granted to low-cost companies, a modality to which Brazilian Chilean Latam has also bent. "None of the international routes, which currently occupy an occupation superior to the 90%, it's profitable because of this pricing policy, "Malvido said.

At a press conference, the owner of the airlines exposed in detail the current market conditions and the adverse consequences for the public company and the big loser. "Although we are facing a very good season, with almost full planes on all our routes, especially international, the tariff war has failed the company because we do not cover variable expenses. "In concrete terms," ​​he added, "this means that, for example, fuel costs can not be paid with revenues. "

"At the local level, Latam applies a very aggressive pricing policy, which forces us to be competitive under these conditions, which makes the profitability very low or even nil in some cases," he said. Therefore, he said, "we have trouble keeping up with the payment to suppliers, the payment of salaries and accounts will be worse this year than last year, when we need 200 million US dollars from the state to continue working, year we will need more. "

The predominant discourse of the government, and in particular of President Mauricio Macri, has highlighted the cost that the state represents to maintain the flag line and touted a management that would succeed in reducing the costs. This is not what happened in 2018, when the losses of Aerolineas Argentinas were much higher than those of the previous year. Now, its current president, Luis Malvido, warns that this year will be even bigger.

In April, Macri compared the management of airlines to that of low-cost lines, obviously to rent them. "The new airlines are not asking anyone to weigh anything, they are selling their tickets and, if they are doing well, they are winning." "They act badly, they lose," said the president. a television interview. However, low-cost carriers that are beginning to retain some of the airline-operated routes are receiving provincial grants, such as Flybondi, Avianca, Norwegian and Jetsmart, from the governorates of Córdoba, Santa Fe, Tucumán and Chubut. . The El Palomar terminal has also been reconditioned, with public funds, so that it can be used by low-cost airlines and reduce airport taxes, as the line flag must pay.

Malvido acknowledged that this year the company would need a state contribution greater than that of 2018, but noted that they are doing "all that is possible" to remedy this situation, as "digitizing the business to a level never before achieved".