Aerolíneas Argentinas
| Company type | State-owned enterprise |
|---|---|
| Industry | Airline |
| Predecessor | Aeroposta Argentina, Aviación del Litoral Fluvial Argentino, Flota Aérea Mercante Argentina, Zonas Oeste y Norte de Aerolíneas Argentinas |
| Founded | 1949 |
| Fate | Returned to government ownership in 2008 |
| Headquarters | Buenos Aires , Argentina |
Area served | Domestic and international (including South America, North America, Europe, Africa, Asia, Oceania) |
| Products | Passenger and cargo air transport |
| Owner | Government of Argentina |
Number of employees | Approximately 5,384 (as of 2000) (2000) |
Aerolíneas Argentinas, officially known as Aerolíneas Argentinas S.A., stands as Argentina's state-owned flag carrier and its largest airline. It was founded in 1949 through the consolidation of Aeroposta Argentina, Aviación del Litoral Fluvial Argentino, Flota Aérea Mercante Argentina, and Zonas Oeste y Norte de Aerolíneas Argentinas, commencing operations in December 1950. In 1990, a consortium led by Iberia assumed control, followed by Grupo Marsans' acquisition in 2001 during a period of significant financial distress. The airline returned to government ownership by the end of 2008. Based in Buenos Aires, it became a member of the SkyTeam alliance in August 2012, with its cargo branch joining SkyTeam Cargo in November 2013.
Operating alongside its former affiliate Austral Líneas Aéreas, Aerolíneas Argentinas utilizes two main hubs located in Buenos Aires: Aeroparque Jorge Newbery and Ministro Pistarini International Airport. Its domestic and regional services primarily employ narrow-body aircraft such as the Brazilian-built Embraer E190 and Boeing 737 variants (-700, -800, MAX 8). For long-haul and intercontinental routes, the airline deploys wide-body Airbus A330-200s.
From Origins to Privatization
The roots of the airline date back to 1929 when Compagnie Générale Aéropostale initiated airmail flights between Buenos Aires and Asunción using Laté-25 planes, later extending coverage to Patagonia. Initially staffed by French aviators including the famed pilot and writer Antoine de Saint-Exupéry, the operation gradually transitioned to Argentine personnel as Aéropostale’s Argentine branch, Aeroposta Argentina, was formed. By 1947, Aeroposta had evolved into a mixed-ownership company with the government holding a 20% stake. Alongside Aeroposta, three other mixed-stock carriers—ALFA, FAMA, and ZONDA—served regional and international routes but faced financial challenges. In 1949, President Juan Perón unified these entities into the state-owned Aerolíneas Argentinas-Empresa del Estado, which began consolidated operations on January 1, 1950.
Aerolíneas Argentinas officially launched independent services on December 7, 1950. Prior to this, it had acquired five Convair aircraft and incorporated the Douglas DC-6, enabling a weekly route from Buenos Aires through Rio de Janeiro, Natal, Dakar, Lisbon, Paris, to Frankfurt by late 1950. The fleet also included DC-4s servicing Santiago, Lima, Santa Cruz, and São Paulo. By March 1953, the network extended over , utilizing DC-3s, DC-4s, DC-6s, Convair-Liner 240s, and Short Sandringhams. Passenger traffic increased from roughly 291,988 in 1954 to more than 327,000 in 1955. Although an order for ten F-27 aircraft was placed in 1957, these were never operated. Aerolíneas Argentinas was among South America's pioneers in jet aviation by acquiring six Comet jets during the late 1950s; the first arrived in March 1959 and inaugurated flights to New York City that May.
In the early 1960s, the fleet comprised Comet 4s, Convair 240s, DC-3s, DC-4s, DC-6s, and Sandringhams; deliveries of F-27 aircraft remained outstanding. The introduction of turboprop Avro 748 aircraft occurred in 1962 alongside commencement of Sud Aviation Caravelle jet operations on regional routes within that year. By mid-decade, staff numbers approached 6,000 with a varied fleet including Comet models, Caravelles, and HS-748 turboprops. Financing from the Ex-Im Bank and Boeing facilitated a $37 million acquisition of Boeing 707-320Bs in 1966. Toward the end of the decade in late 1969, Aerolíneas entered into a pooling agreement with Lufthansa for services between Germany and Argentina.
By March 1970, six Boeing 707s operated Europe and US routes; regional destinations were served by Caravelles and Comets; HS-748s handled domestic flights; meanwhile six Boeing 737-200s were on order. The late 1970s saw further fleet expansion with leased Boeing 727 aircraft from Hughes AirWest (later replaced by direct orders), additional Boeing 737s and Boeing 747s. The arrival of Fokker F-28 jets led to retiring HS-748 turboprops—making Aerolíneas Argentinas South America’s first all-jet airline. Long-haul destinations such as Frankfurt, Madrid and Rome were introduced using Boeing 747s starting January 1977. In June 1980, it pioneered scheduled commercial service over the South Pole utilizing a Boeing 747SP purchased from Braniff for $51 million.
In accordance with Argentine legislation passed in 1971 granting Aerolíneas Argentinas exclusive rights over international air services from Argentina along with a dominant share (50%) of domestic air traffic—the airline solidified its status as the national flag carrier. After acquiring Austral Líneas Aéreas in 1980 under state ownership, both airlines operated overlapping routes with similar fleets but faced labor disputes culminating in a three-week pilots’ strike in July 1986. During this strike period government-leased Air Force pilots maintained limited operations while competitors expanded their domestic and international market presence.
Utilizing its Boeing 747 fleet starting June 1980, Aerolíneas conducted groundbreaking transantarctic commercial flights. However during and following the Falklands War (1982), British airspace restrictions disrupted London–Buenos Aires services forcing passengers to connect through Madrid.
By March 1985 staff numbers neared 10,000 with a fleet composed of various Boeing models (707s; multiple variants of the 727 and 737 series), five Boeing 747-200Bs plus one Boeing 747SP; Fokker F28 jets were also part of the lineup. Its international network connected Buenos Aires to major cities across South America, North America, Europe; additionally reaching Africa (Cape Town), Asia (Hong Kong), and Oceania (Auckland). Service to Sydney commenced in 1989; London flights resumed January 1990.
Privatisation: 1990–2008
| Item | 1991 | 2001 |
|---|---|---|
| Assets (excluding routes, brand, etc., US$ million) | 636–776 | Template:Dunno |
| Annual net result (US$ million) | 18 | –390 |
| Liabilities (US$ million) | 0 | 900 |
| Aircraft (owned/leased) | 28/1 | 1/43 |
| Flight simulators | 3 | 2 |
| Employee count | 10,372 | 6,734 |
The privatisation process was initiated during Raúl Alfonsín’s administration with a proposal for Scandinavian Airlines to acquire a 40% stake, which faced opposition from the Peronist faction. By March 1990, the workforce numbered 10,372 individuals. Later that year, a consortium led by Iberia Airlines alongside Austral’s owner Cielos del Sur S.A. purchased 85% of Aerolíneas Argentinas for US$130 million in cash plus a debt-to-equity swap amounting to US$2.01 billion. An earlier consortium involving Alitalia, American Airlines, KLM, and Varig had withdrawn. Despite initial resistance from the Peronists, the succeeding government under President Carlos Menem proceeded with the sale as part of a larger strategy to reduce Argentina's external debt burden. The government absorbed US$741 million in debt as part of capitalisation. At the time of sale, the airline was free of debt, reporting an average annual profit of US$90 million and revenues totaling US$719 million. The agreement obligated the buyer to pay US$260 million in cash plus US$1.61 billion in external debt bonds, effectively allowing the acquirer to assume debt corresponding to the purchase price; this was reflected in a 1991 balance sheet showing acquisition-related debt of US$390 million. The legality of this privatisation was only contested years later in 2009.
| Year | Millions |
| 1950 | 253 |
| 1955 | 353 |
| 1960 | 592 |
| 1965 | 948 |
| 1969 | 1,615 |
| 1971 | 2,069 |
| 1975 | 3,441 |
| 1980 | 6,927 |
| 1989 | 8,254 |
| 2000 | 11,111 |
| 2008 | 12,107 |
| 2009 | 11,477 |
| 2010 | 13,640 |
| 2011 | 13,649 |
| 2012 | 14,150 |
| 2013 | 17,753 (projected) |
| 2016 | 18,933 |
| 2017 | 20,390 |
In March 1991, Iberia increased its presence in Argentina by acquiring Cielos del Sur S.A. Aerolíneas Argentinas and Austral continued operating as separate companies but under unified ownership. In April 1994, Iberia raised its ownership stake to 85% following a capital injection of US$500 million in cash. The Argentine government retained a 5% shareholding while employees held 10%, with the government giving up voting rights. Due to European Commission regulations on state aid, Iberia reduced its holding to 20%, transferring 65% ownership to Interinvest/Andes holding—a consortium comprising Spain’s SEPI (Iberia’s former owner) and financial institutions Merrill Lynch and Bankers Trust. By July 1997 Iberia further decreased its share to 10%, while AMR Corporation (parent company of American Airlines) obtained a 10% stake in Interinvest—equivalent to approximately 8.5% ownership in both Aerolíneas Argentinas and Austral—pledging to seek new investors. The U.S. Department of Justice approved AMR’s participation in July 1998. The Argentine government maintained its 5% interest. From 1992 through 1999 losses accumulated to US$927 million; losses for the year 1999 alone reached US$150 million. SEPI rejected AMR’s restructuring proposal; unable to secure buyers, SEPI resumed control.
By March 2000, Aerolíneas Argentinas employed approximately 5,384 personnel with a fleet comprising Airbus A310-300s and A340-200s as well as Boeing 737-200s and Boeing 747-200Bs; six Airbus A340-600 aircraft were ordered but never entered service. International routes included Madrid, Miami, New York, Paris, Rome, Sydney among others; domestic services covered major cities across Argentina.
Corruption accusations emerged concerning Iberia’s acquisition price and lease-back arrangements that saddled the airline with self-financed debt. Mismanagement by American Airlines and SEPI exacerbated financial difficulties culminating in a bankruptcy protection filing in June 2001; administration commenced with salary payments temporarily funded by the Argentine government rather than SEPI resources. Resistance from the mechanics’ union against reorganisation plans led to suspension of wage payments. Key international flights were suspended due to unpaid fuel bills; most aircraft were grounded with only limited domestic and international operations continuing.
In late 2001 the Marsans Group purchased a controlling 92% stake via Air Comet from SEPI and committed a capital injection of US$50 million aimed at reviving both short-haul and long-haul routes. International services resumed by November 2001. By July 2002 employment increased beyond 7,000 workers. The company exited bankruptcy protection in January 2003 and soon after left administration. That year marked its first profitable period after five years alongside notable market share expansion.
Renationalisation: 2008–onwards
| Years | Losses (in non-inflation adjusted pesos) | Losses (in US dollars as official rate) | Source |
|---|---|---|---|
| 2008 | 1,814,518,196 | 525,490,355 | |
| 2009 | 1,661,074,557 | 437,124,883 | |
| 2010 | 1,611,603,589 | 405,332,895 | |
| 2012 | 2,407,120,549 | 489,451,108 | |
| 2013 | 2,781,683,300 | 426,573,118 | |
| 2014 | 5,486,921,815 | 641,670,192 | |
| 2015 | 9,278,058,094 | 711,507,523 | |
| 2016 | 7,035,221,506 | 442,745,217 | |
| 2017 | 6,379,021,189 | 342,057,011 | |
| 2018 | 21,804,470,692 | 578,367,923 | |
| 2019 | 41,182,297,596 | 687,632,286 |
In May 2008 the Argentine government revealed a deal with Grupo Marsans whereby Marsans would reduce its stake in Aerolíneas Argentinas to 35%, enabling new private investors to join and increasing the government's ownership from 5% to 20%. Following disputes and allegations from Marsans and after the breakdown of negotiations became public,[1] the government assumed full control in July 2008 by purchasing 99.4% of shares; employees maintained a 0.6% share.[2]
At that point in time nearly 40% of the airline’s fleet was grounded.[3] The Chamber of Deputies approved the renationalisation in August and it was enacted into law after Senate approval in September 2008.[4] Disagreements over asset valuation caused negotiations with Marsans to collapse,[5] leading to the appointment of a court administrator in November 2008.[6] In December Congress reaffirmed its backing for the takeover with a majority vote supporting expropriation.[7]
By September 2011 Aerolíneas Argentinas successfully exited the restructuring process initiated in 2001.[8] Later that year austerity policies were introduced by the government aimed at reducing deficits through streamlining routes, implementing salary reductions for pilots and crew members and retiring outdated aircraft.[9]
Passenger numbers soared to an all-time high of 8.5 million in 2013—a 57% increase since renationalisation—while revenues climbed to US$2 billion (an 85% rise from 2008). Losses were significantly curtailed from $860 million (78% of revenue) down to $250 million (12%). Company assets tripled by 2012 exceeding $1.6 billion; fleet size grew from 26 to 63 planes with the average aircraft age dropping from 20 years to just 7.5 years.[10] Forecasts for 2018 projected passenger traffic at 14.5 million and losses reduced further to $90 million.[11]
Between 2008 and 2021 Aerolíneas Argentinas received government subsidies totaling more than $8 billion USD.[12]
Proposed privatization under Javier Milei
Following his election as Argentina’s president in 2023, Javier Milei unveiled plans to privatize Aerolíneas Argentinas. His strategy involves transferring ownership stakes from the state to employees and terminating government financial support. This initiative has encountered strong resistance from labor unions including strikes and contentious remarks from union leadership. On 21 December 2023 Milei issued a presidential decree commencing the privatization process which is expected to transfer control primarily to workers. Additionally he intends to implement open skies policies and permit cabotage operations to enhance market competitiveness.
Ownership and subsidiaries
As of 2014, Aerolíneas Argentinas was entirely owned by the government. By 2013, its group of subsidiaries encompassed Aerolíneas Argentinas Cargo, the domestic airline Austral Líneas Aéreas, ramp handling company Aerohandling, cargo operator JetPaq S.A., and tourism business Optar S.A. The airline group manages two primary hubs in Buenos Aires: Aeroparque Jorge Newbery, which serves regional and domestic flights with smaller aircraft, and Ministro Pistarini International Airport, mainly dedicated to international services but also accommodating some regional and domestic routes. Between 2010 and 2020, the airline offered complimentary transfers connecting these two airports.
By December 2019, the workforce of the airline group numbered around 10,230 employees.
In 2020, during the COVID-19 pandemic, Aerolíneas Argentinas merged with its subsidiary Austral. This integration unified Austral’s aircraft fleet under Aerolíneas Argentinas, aligned labor unions for pilots and cabin crew, and continued operating under the Aerolíneas Argentinas brand.
Key people
Pablo Ceriani held the position of president until 2023. In 2024, Fabian Lombardo, previously the chief commercial officer, was appointed as president and CEO.
Headquarters
The headquarters of Aerolíneas Argentinas is located at Aeroparque Jorge Newbery in Buenos Aires.
Alliances
Under the guidance of Delta Air Lines, Aerolíneas Argentinas initiated its entry into SkyTeam at the end of 2010. It became the first carrier from South America and the second from Latin America to join this alliance in August 2012 as its 18th member. The airline's cargo division joined SkyTeam Cargo in November 2013, marking it as the alliance's 12th member airline.
Aerolíneas Argentinas has established codeshare partnerships with various airlines, such as:
- Aeroméxico
- Air Europa
- Air France
- Boliviana de Aviacion
- China Eastern Airlines
- Delta Air Lines
- El Al
- Gol Linhas Aéreas Inteligentes
- ITA Airways
- KLM
- Korean Air
- LATAM Airlines
- Saudia
Interline agreements
Current
As of , Aerolíneas Argentinas operates the following aircraft:
| Aircraft | In service | Orders | Passenger capacity | Remarks | ||
|---|---|---|---|---|---|---|
| C | Y | Total | ||||
| Airbus A330-200 | 10 | — | 24 | 248 | 272 | |
| Boeing 737-700 | 7 | — | 8 | 120 | 128 | |
| Boeing 737-800 | 28 | — | 8 | 162 | 170 | |
| Boeing 737 MAX 8 | 12 | — | 8 | 162 | 170 | |
| Embraer E190 | 24 | — | 8 | 88 | 96 | Scheduled for retirement and replacement by Embraer E195-E2. |
| Embraer E195-E2 | — | 12 | TBA | To succeed the Embraer E190. | ||
| Cargo fleet | ||||||
| Boeing 737-800BCF | 2 | — | Cargo | Deliveries commenced in 2023. | ||
| Total | 83 | 12 | ||||
Retired
Over the years, Aerolíneas Argentinas has operated an extensive variety of aircraft, including:
- Airbus A310-300
- Airbus A320-200
- Airbus A340-200
- Airbus A340-300
- Avro York
- Boeing 707-320B
- Boeing 707-320C
- Boeing 727-100
- Boeing 727-200
- Boeing 737-200 along with its Advanced and Cargo variants
- Boeing 737-300F
- Boeing 737-500
- Boeing 747-200B
- Boeing 747-400
- Boeing 747SP
- Caravelle III, Caravelle VI-N, Caravelle VI-R
- Convair CV-240
- Comet 4 and Comet 4C
- Douglas C-47 series (C-47, C-47A, C-47B)
- Douglas C-54A Skymaster
- Douglas DC-3, DC-4, DC-6
- Fokker F28 Mk-1000 and Mk-4000
- Hawker Siddeley 748
- Lockheed Constellation
- McDonnell Douglas MD-83 and MD-88
- NAMC YS-11-100
- Short Sandringham
- Vickers VC.1 Viking
Recent developments
Starting in 2009, Aerolíneas Argentinas initiated a fleet renewal program by leasing ten Boeing 737-700 aircraft and acquiring two additional units to phase out older Boeing 737-200s and MD-80s. These two newly purchased planes marked the airline’s first acquisitions in nearly two decades and joined the fleet by mid-year. By October of the same year, the carrier pursued six Boeing 737-800s to augment its existing dozen 737-700s and replace the aging 737-500 models. The final scheduled operation of a 737-200 took place in November 2009. In late 2010, the airline secured leases for another ten Boeing 737-700s from ILFC, with deliveries commencing in April 2011. By late 2012, Aerolíneas was assessing Airbus A350-900 and Boeing 787-9 aircraft as candidates to succeed its long-haul fleet. The introduction of leased Airbus A330-200s in 2013 expanded service to destinations such as Bogotá, Cancún, Caracas, and Miami, with intentions to partially substitute Airbus A340-200s by 2016.
April 2013 saw Air Lease Corporation provide six Boeing 737-800s to Aerolíneas Argentinas, with deliveries beginning in November 2014; CIT Group supplemented this with four additional aircraft starting January that year. In October 2013, the airline announced a substantial $1.8 billion acquisition of twenty more Boeing 737-800 jets. Concurrently, Aerolíneas leased four pre-owned Airbus A330-200s from ILFC starting September 2013 and signed a memorandum of understanding with Airbus in November to purchase four further A330-200s. This $887 million contract was finalized by February 2014, featuring planes equipped with GE Aviation CF6-80E1 engines; the first directly procured A330-200 was delivered in March 2015.
Confronted with an aging long-haul fleet, CEO Mario Dell’Acqua revealed in November 2017 that Aerolíneas was exploring replacements for its Airbus A340 aircraft, considering either Boeing 787 or Airbus A350 models for entry into service beginning in 2020. The existing Airbus A330 fleet is planned to be gradually retired following the withdrawal of the A340s. Also in November 2017, Aerolíneas Argentinas became Latin America’s pioneer operator of the Boeing 737 MAX 8, which commenced commercial flights on the Buenos Aires–Ezeiza to Mendoza route.
Livery
In June 2010, Aerolíneas Argentinas refreshed its corporate identity by adopting a contemporary logo featuring light blue combined with grey tones. This update replaced the previous eurowhite paint scheme with colors inspired by the Argentine national flag alongside grey accents. The airline’s subsidiary Austral also embraced this new livery design, incorporating a distinctive red cheatline.
Accidents and incidents
Data from the Aviation Safety Network indicates that the airline's most recent fatal accident took place in 1970. Up to June 2023, there have been a total of 47 documented accidents or incidents since the airline commenced operations in 1950. Aerolíneas Argentinas is recognized as one of the safest carriers globally.
See also
External links
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