Grants: Airlines and Austral will need more money than in 2018

State companies Aerolíneas Argentinas and Austral will receive more grants this year than in 2018, when they received $ 200 million, a situation which of these companies is attributed to "hard to findachieve profitability in great competition " of the market.

"This year will be worse than last year, we still do not know how much, grant contributions amounted to $ 200 million in 2018 and this year they will be larger", admitted the president of the airlines, Luis Malvido.

Despite the "aircraft revolution", more and more airlines are in crisis

The official commented at a press conference that "There is a lot of competition in the local market, strongly driven by Latam, What is he doing low price very aggressive. This makes it less dependent on the efficiency of each airline. At these prices, it is very difficult to make profitable the itineraries ".

"Latam is very aggressive in its pricing policy. But remember that the cheapest price arrived with pbadages to a peso. It is hard to say who started, why and what is the rational calculation behind. In addition, Latam currently holds a fair market share above a share of the lowest costs, "said Malvido.

Malvido badured that "None of our international links are profitable at the prices we sell. One of our competitors put the price of the road to Miami at $ 550, without luggage, and another competitor copied it the next day with the same price, but with the possibility of two pieces of luggage per pbadenger ".

"These are prices that we've never seen before, there were promotions that lasted a short time, but now we see that the norm is that a ticket for Miami costs 500 dollars , while two years ago, they paid $ 1,000, "said Malvido, quoted by the agency. by the Agencia Noticias Argentinas.

NA / H.B.