Milei declares state-owned Aerolíneas Argentinas 'subject to privatisation'

President Javier Milei has formally declared the state airline Aerolíneas Argentinas to be "subject to privatisation" after weeks of union conflicts leading to two strikes in September and affecting tens of thousands of passengers although the decision to privatise depends on Congress.

"It is imperative to propitiate the privatisation of the company Aerolíneas Argentinas," read the executive decree published Wednesday night.

In the text, the government justifies its decision by pointing to the state having to contribute US$8 billion "by virtue of the chronic deficit" of the company since its nationalisation 16 years ago.

The decree had been anticipated on September 27 by Presidential Spokesperson Manuel Adorni when he asked: "Why does this atrocity have to be covered out of the pockets of Argentines?"

The Milei government yearns to privatise Argentina’s flagship carrier and sought to include it in a sweeping mega-reform law early this year. It eventually pulled the state firm from the list of public entitles to be sold off.

President Milei will now need the approval of Congress to make this decree stick.

The development comes after weeks of conflict with aviation unions demanding compensation for the deterioration of their pay amid an annual inflation reaching 236 percent last August.

Authorities at Aerolíneas Argentinas have offered an increase of almost 11 percent, a proposal rejected by the workers.

Two strikes last month affected hundreds of flights and over 45,000 passengers, producing losses of over US$3 billion.

In response, Milei declared air transport to be an "essential service" to force at least half of services to be provided in the event of a strike by the sector but on September 27 a court suspended this measure, considering that it limited the right to strike.