Privatization Plans for Aerolíneas Argentinas Persist in Government Discussions

The ruling party in the Argentine Chamber of Deputies, backed by its allies from Pro, will seek to include Aerolíneas Argentinas, Correo Argentino, and Radio y Televisión Argentina (RTA) in the list of public companies to be privatized.

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These companies were initially excluded from this list during the negotiations carried out by Chief of Staff Guillermo Francos with opposition sectors in the Senate.

See also: Aerolíneas Argentinas Removed from Privatization List Amid Legislative Discussions

According to the newspaper La Nación of Buenos Aires, Martín Menem, president of the Chamber of Deputies, confirmed the intention to push forward with the previously approved half-sanction in the lower house regarding the privatization of these companies. The session to address this issue is scheduled for Thursday, the 27th of this month, where the modifications from the Senate will be accepted or rejected.

The debate over the privatization of public companies, included in the Bases Law project, has been one of the most controversial between the ruling party and the opposition. Originally, the package included 41 companies, but only 6 remained after the modifications. Among these, Energía Argentina S.A (Enarsa) and Intercargo are subject to total privatization, while Agua y Saneamientos Argentinos (AySA), Belgrano Cargas y Logística, Sociedad Operadora Ferroviaria (Sofse), and Corredores Viales are on the list for concession or privatization.

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The government now downplays the commitment made to the Senate to exclude these three companies from privatization, indicating that it was only because they did not have the votes, not because it was part of a negotiation.

In the Chamber of Deputies, the proposal was previously approved with 138 votes in favor and 111 against, with a difference of almost 30 votes in favor of the ruling party. In the next session, they expect to replicate this difference. However, in the dialogue-friendly opposition blocs, there are divided positions, although a majority does not seem willing to keep these companies in state hands. Sectors of the Radical Civic Union, according to La Nación, argue that «it is not fair for the poorest to pay for the operational deficit of the company.»

Presidential spokesperson Manuel Adorni emphasized that «the companies as they are cannot continue operating» and that the idea is to save them with the entry of private capital. If the ruling party does not achieve the majority to insist on the original version of the project, the government will send bills to privatize or concession these companies.

The session on Thursday, the 27th, will be crucial to define the future of these companies and the policy of privatization in Argentina.