Topic of the Week: Argentina Tries to Kill Competition Once Again

Argentina has stepped up its attacks on competition in the country’s airline market once again by deciding to evict LAN from its hangar at close-in Aeroparque Jorge Newbery in Buenos Aires. LAN is the only credible competitor to flag carrier Aerolineas Argentinas, and if evicted, this was severely restrict LAN’s ability to operate.

Anyone think this is a good idea?

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18 Comments on "Topic of the Week: Argentina Tries to Kill Competition Once Again"

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John U.
Guest

Given Argentina’s history since the Peron era and the behavior of Ms. Kirchner, should one even be surprised? A real shame and a lesson for the USA b/c Argentina was the richest country on earth around 1900…

Darren Popik
Guest

None of my Argentinean friends fly Aerolineas — they all take LAN over AR. There’s a big discrepancy between the on-time performance of LAN vs. AR. Plus, AR is much more likely to cancel flights. Put simply, one of these airline is professionally run … and the other is Aerolineas.

As to Aeroparque, it’s a great little airport, with a very convenient location — much prefer it over the out of town Ezeiza. Plus, convenience aside, you get a great view of the city when flying into Aeroparque.

AA
Guest

It´s another unthinked and ignorant decision of a government that doesn´t have a plan…..at all. Yesterday, an official referred to LAN´s facility at SABE, as “little hangar”, trying to minimize the impact of leaving the airline without it.
Finally, a judge decided to call time out and deactivate the eviction, due to “…lack of enough time to move the operation to Ezeiza (SAEZ)…”
Hopefully, LAN will continue flying and AR will continue spending $ 2MM per day from argentinean taxpayers.

Jay F.
Guest
The official story is that Ignacio Cueto, COO of LAN Chile, met this week with the Argentinian vice-minister of economy, Axel Kicillof, to explain the harm done to LAN operations in the airport closer to Buenos Aires city center by removing access to LAN’s hangar there. The minister expressed surprise about this incident and set further meetings to clarify the situation. Aerolineas Argentinas is asking for full access to provide cargo services to Chile, as was promised around 2008 when Aerolineas was part owned by a Spanish enterprise. Aerolineas seems to be acting in a desperate attempt at self-preservation. It… Read more »
eleanor.c.moore
Member

Competition is always good for the flying public!

Nick Barnard
Member

yup, but not apparently for AR!

David SF eastbay
Member

It doesn’t seem right. It just shows that AR and the government is scared of good service trumping bad. Instead of trying to improve AR, they just do what they can to hinder LAN and better service to the local people.

dan powers
Guest

Take note, LAN-argentina has also been denied the right to use jetways at aeroparque….all of them monoplized by AA/Austral…..

Axelsarkiss
Member

Nothing surprising from Kirchnerland: stifling profitable competition that provides a better service. Anywhere else, AR would have died long ago.

Consumer Mike
Guest
The government of Cristina Fernandez Kishner (The Kishner Dynasty) is one of the most corrupt, inefficient and anti-democratic in the history of Argentina – AND that is saying something! They have nationalized foreign investments to steal money/assets, they just lost a major court battle a couple of days ago in the U.S. trying to escape another rip-off scheme of investers who had purchased Argentine Bonds. They must now pay a good part of the mountain of money they stole from investers. Money they don’t have. This woman and her young advisers (friends of her jet-set son) are looking at every… Read more »
Axelsarkiss
Member

Mike – Couldn’t have said it better myself. Agreed fully.

dan powers
Guest

cristina has no clue about aviation…her 757-200 was parked for a while because she was afraid to fly on it (after an engine failure on a reposition flight). today she cannot take it on any international flight because there is a possibility it could get impounded…like the navy ship in Ghana.

Consumer Mike
Guest

She is as dumb as a nail. Her only thinking is follow the bucks. She has over reached in many areas. Air transport is one. All that needs to happen in this arena to makle her tow the line is someone needs to slap her wrist – HARD. She would stop playing aviation games FAST.

Axelsarkiss
Member

We need her to stop playing all sorts of games, not just aviation ones.

How this woman was elected (and re-elected) is beyond comprehension.

Consumer Mike
Guest

She was re-elected similar to how Bush was “SELECTED” for a second term. Fool the voters and have your brother count the votes. Argentina has only two options; 1) Vote her AND her political party out or 2) The historic Argentine use of the military card.

Remember, nothing lasts forever.

Bravenav
Guest

Whether it is a good idea or not is irrelevant. LAN had a valid lease on the hangar and had not violated the lease agreement. The government’s only explanation was “for the good of Argentina” which of course means for the good of Aerolineas. This is horse excrement!

Spirit FF
Member
While I’m no supporter of Evita Kirchner, she screws her own country too. Argentina taxes exports – no one can understand that in Argentina! She needs to let the market dictate. She’s already forced Pluna out of business by not allowing them to fly between MVD and BUE – the main market. She also has prevented EZE-MVD-EZE tags by UA and AA. While it may not sound like much – They were the only connections from OA to MVD via EZE. Also, it was a huge cargo flight for both AA and UA. It wasn’t uncommon for a 767-300 to… Read more »
Antonio R.
Guest
The best way for good business is not having any competence. But this is only one more chapter in the airlines story of Argentina to promote their flag company. Aerolineas Argentinas has some competitors and the most relevant is LAN, a chilean airline whose efforts to increase their market have always been damaged by diverse obstacles. Indeed, in the past two years, LAN had to overcome several difficulties to continue operating in Argentina, as the decommissioning of fingers to board passengers in Jorge Newbery Airport (operated by Aerolineas Argentinas) or conflicts with the only company that provides ground services at… Read more »
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