President Javier Milei’s government says it has reduced the workforce at state-owned airline Aerolineas Argentinas by 13 percent over the last six months.
A total of 1,500 fewer workers are now on the payroll, said Presidential Spokesperson Manuel Adorni at his daily press conference on Wednesday.
He praised the state carrier’s new boss, Fabián Lombardo, for trimming staffing levels, which have taken place amid a persistent conflict with aeronautical unions over wage increases.
“Aerolíneas Argentinas has announced that it has managed to downsize its employees by 1,500, most of them by voluntary retirement [schemes], which means a cutback of 13 percent of its staff," highlighted Adorni.
“This puts it at levels like other companies such as [commercial airline] Latam, which has a similar number of employees,” he said.
President Milei’s chief spokesperson, who did not mention the ongoing conflict with unions, said the flagship state airline had reduced its working deficit by 70 percent.
“This winter it was the first in the last seven seasons to generate genuine income,” said Adorni, who thanked Lombardo and his executive team for “putting the company in order.”
Aviation unions are at odds with the Milei administration and the airline’s top brass over “unacceptable” wage proposals and have launched strike action in demand of better pay.
Workplace assemblies have also led to the cancellation of dozens of flights, affecting thousands of passengers. More suspensions are expected on Friday, with union leaders vowing further action.
Aerolíneas’ top management has denounced the assemblies as “covert strikes” and announced wage deductions.
Adorni praised Lombardo for imposing sanctions on “those launching surprise strikes that complicate the lives of those who intend to travel.”
Milei’s top spokesperson said that as long as the flagship carrier continues under state administration, officials will work to make it “as efficient as possible … as a true private company.”
Lombardo penned a letter to Aerolíneas workers last week, in which he confirmed that the company would close out the year with 10,400 employees, a 13 percent drop from December 2023.
“That is not the only milestone we achieved during this time,” wrote the CEO.
“In the first semester, we reduced our operating deficit by over 70 percent, from US$272 million to US$79 million. In July alone we turned a genuine profit of over US$20 million,” he added. “The last winter season in which the operating result was positive was in 2017,” he pointed out.”
Aerolíneas Argentinas lost around US$390 million last year, according to data published by Infobae. The firm’s new bosses are looking to trim that by at least half.
“Our work is paying off,” continued Lombardo. “We will show the industry and Argentine society that we are on the right path to correct the direction of the company.
Lombardo said that the Aerolíneas Argentinas had cancelled “deficit-ridden flights” – a reference to the cutting of loss-making international routes to New York and Havana, as well as the domestic Atlantic coast locations – and was “relaunching red-eye flights” as it looks to exploit “new opportunities.”
The ‘red-eye’ flights, which will be pitched a low-cost “super promo” rate, according to the firm, will go to five locations (Bariloche, Iguazú, Salta, Comodoro Rivadavia and Trelew) from Aeroparque Jorge Newbury, offering affordable rates at late hours.
– TIMES/AFP/NA
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