Summary
- Aerolíneas Argentinas’ first wage increase proposal was rejected by its 4 unions because it was considered “well below the inflation rate.”
- Employees were expecting a 15% wage increase but were offered only 7% by the airline, resulting in deep discontent amongst the employees.
- The long run of Aerolíneas Argentinas as a state carrier is uncertain, because the frontrunner for the Argentinian presidency, Javier Milei, has expressed interest in privatizing the airline.
Aerolíneas Argentinas’ 4 unions rejected the airline’s first wage increase proposal on Tuesday throughout the ongoing salary negotiations. In line with the Unions, the proposal presented by the state carrier was prompting them to reject it firmly.
Deep discontent inside Aerolíneas Argentinas
First reported by Aviacionline, Aerolíneas Argentinas and its unionized employees are within the midst of a labor dispute as they give the impression of being to barter a salary increase. Sources near the media outlet indicated that employees were expecting a wage increase proposal of around 15%. As a substitute, Aerolíneas Argentinas offered a 7% salary raise.
In an announcement posted on social media, the Air Lines Pilots Association (or APLA, in Spanish) said that
Argentina’s annual inflation this 12 months is currently at 142.4%, in line with analysts polled by the South American country’s central bank, as reported by Reuters.
The 4 unions (APLA, the Aeronautical Personnel Association – APA, the Aeronautical Technical Personnel Association – APTA, and the Union of Higher and Skilled Personnel of Airline Corporations – UPSA) announced they may remain awaiting a brand new meeting to unlock the wage discussion and move forward with an agreement.
Could Aerolíneas Argentinas be privatized?
Aerolíneas Argentinas’ future as a state carrier could possibly be in jeopardy. Javier Milei, the frontrunner for the Argentinian presidency after shockingly winning the country’s primary election, is reportedly interested by selling the airline.
Photo: HMBSoFL Photography/Shutterstock.
Last month, Milei said that Aerolíneas Argentinas must be privatized. He said may be considered during a campaign event he held in Mar del Plata. Since its nationalization in 2008, Aerolíneas Argentinas has never been profitable. Nonetheless, it has reduced its net losses within the last couple of years, posting its best result ever in 2023’s first half. The state company posted a $48 million net loss throughout the period, an 80% decrease in comparison with 2019’s $667 million net loss.
Javier Milei added that Aerolíneas Argentinas and other State-run corporations have an exorbitant variety of political positions, which is inefficient.
A brief view at Aerolíneas Argentinas
The Argentinian state carrier is commonly considered considered one of the world’s least efficient airlines. Since 2008, it has been highly subsidized by the federal government. It has mostly been protected against domestic competition. Only recently, newcomers, reminiscent of Flybondi and JetSMART, have been capable of gain market share within the country.
Aerolíneas Argentinas has a fleet of 81 aircraft. The corporate operates nine Airbus A330-200 (and expects to receive yet another) for long-haul operations. For brief and medium-haul operations, it has eight Boeing 737-700s, 29 737-800s, seven 737 MAX 8s (with ten more coming), and 26 Embraer E-190s. Furthermore, it has two Boeing 737-800BCFs for all cargo operations.
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