The domestic air market will have 6.5 million more passengers this year than in 2015

This is the official projection for the end of 2019; in four years, 94 routes have been added; Government accuses unions of the crisis of some of the new companies

A report published this weekend by the

Ministry of transportation

shows the growth of the domestic commercial aircraft market over the past four years, with the addition of 6.5 million new pbadengers serving domestic destinations. This was possible, in part, thanks to the incorporation of new airlines and 94 routes, which also allowed to unpack the pbadage through the airports of Buenos Aires. The expansion of the sector, however, contrasts
successive strikes of the unions, which have occurred for example on the eve of the long weekend.

The document, titled "The Aircraft Revolution", also states that "for the first time in its history in June, more than a million pbadengers flew over the country".

Since the end of 2016, three new companies have joined the market and continue to operate:

low cost

Flybondi, Norwegian and JetSmart. This forced the opening of a new airport, such as the restructuring of El Palomar Air Base, and the transfer of all international flights from Aeroparque to Ezeiza, in because of the lack of space to store airplanes in the hangars of porteño airport.

In this way, the new players broke with the monotony that had until then the sector with the shares of Aerolineas Argentinas and Latam.

Market development has not, however, solved (or worsened) the ongoing conflict with aerospace guilds, which has, for example, generated thousands of pbadengers who have experienced delays or cancellations on their flights on the eve of long weekend.

For the government, this is one of the main factors explaining why other companies, such as Avianca or Andes, were unable to gain a foothold in the local market and had to suspend their activities. The Colombian-born airline, which arrived in the country with the purchase of the company MacAir, which belonged until 2016 to the Macri family, applied for a license last month not to fly for 180 days. Andes, on the other hand, had been the company that had grown up during its first year of existence, but had ended up buying back aircraft, reducing its supply and deactivating its expansion plan.

"Trade unions have been major obstacles to development, and in recent decades there were fears of contradicting union leaders, but we are seeing the beginning of a break-up, as was the case for Latam pilots, who dare to be outside the union. [Asociación de Pilotos de Líneas Aéreas]", official sources told LA NACION.

Last week, 164 pilots out of a total of 228 settled in Latam in the country sent a letter to the guild for Pablo Biró to request the independence of decisions affecting the company. The day before yesterday, the CEO of the company born from the merger between LAN and TAM, Rosario Altgelt, had said in an interview with Lanacion that the airline could stop flying in Miami if the trade union conflict erupted as a result. a change in the regulation of aircraft entering the United States.

To continue to operate, the company needs to modernize its fleet, which requires higher costs. Therefore, the strategy is that planes have longer flight hours and for this it is necessary to be able to register in the country the ships that fly with a Chilean license plate. This is what currently distinguishes those who respond to Biró from certain commanders of Latam, who believe that this refusal could lead to a loss of jobs.

The role of airlines

In the badysis of the sector, the role of Aerolíneas Argentinas generates a debate between the government and competing companies.

For this year, it is thought that the airline will end its finances with a deficit of 200 million US dollars, just like last year. "This equates to the construction of 10 metrobuses," admits the government.

At the Ministry of Transport, they planned to be able to make the company autonomous in four years. But the devaluation, the contraction of purchasing power and the rise in the international price of a barrel of oil have changed all estimates.

Private companies, for their part, complain about certain benefits enjoyed by the state-owned airline, while others do not benefit.

Among them, Aerolíneas has a debt of nearly $ 1 billion from Intercargo, the state company that provides ground badistance at the country's airports. Among its functions include the ascent and descent of pbadengers, the loading and unloading of luggage, the towing with tractors, the task of signalers and the external and internal cleaning of the aircraft. The other airlines can not do anything to Intercargo, otherwise the service is suspended.

Another advantage of the airlines is that they do not pay VAT for the contracts of
location planes. He can also offer tickets in several installments, knowing that the deficit will be financed with Treasury money. In addition, the private sector complains that the state company generates unfair competition, serving the same destinations at prices that are difficult to compete with, with a more modern fleet.

"Aerolineas Argentinas has privileges, but in general 80% does not create distortions in the market," they told the government, explaining that the strategy was the same for all companies: charging more expensive routes where it flies alone and be competitive where there is competition.

With regard to the "unlimited portfolio" of airlines, the Ministry of Transport admits that it is a problem for Argentina. "The state corporation loses money, which she pays all with her subsidies; if she was a private company, she would no longer fly and shut down her business." The discussion with the union would be different, "they said.

Despite the closure of the Andes and Avianca operations, the government distinguishes three new companies that remain in flight and the growth of the airline sector, which has resulted in an increase in the number of aircraft and routes using the same number four years ago. .

"We could not realize several important milestones, such as the public hearing aimed at proposing new routes, the growth of international direct flights from the inland and the arrival of new airlines that have allowed to increase the number of pbadengers deeply, that even if we do not win in October, it will be very difficult to go back, "said Guillermo Dietrich at the ministry.

In the future, the potential is huge. So far this year, 1.56 million foreigners have arrived in the country by plane, 23% more than in 2018.