The Executive Attempts to Privatize Aerolineas Again

On October 2, 2024, the Federal Government issued Decree 873/2024, which declared that Aerolineas Argentinas SA would be subject to privatization, according to the terms and effects set out in the State Reform Law 23696.

Law 23696 regulates the privatization process for companies and corporations partially or wholly owned by the State. The most significant privatizations in Argentina took place pursuant to this law during the 1990s. Law 27742 of Bases and Starting Points for the Freedom of the Argentine People refers to and introduces certain modifications to Law 23696.

According said rules and laws, it is the Executive branch that must issue the declaration of being "subject to privatization." This declaration must subsequently ne approved by the Argentine Congress (see ‘Privatization of State-Owned Companies and Corporations. Applicable Regime’).

Among its grounds, Decree 873/2024 emphasizes that the Government is carrying out a broad program to transform the national transport system and, specifically, air transport, to increase economic competitiveness and improve service quality. In this context, the Decree emphasizes the strategic importance of the aeronautical sector, passenger traffic, trade, and the development of regional economies.

The Executive Branch states that privatizing the company and operating it in market conditions will improve service delivery while safeguarding public finances.
Thus, the measure aims for Aerolineas Argentinas to operate based on commercial efficiency principles and create a competitive environment on equal terms.

Under the current privatization framework, Decree 873/2024 article 3 establishes that the declaration must be communicated to Congress, with the project receiving priority parliamentary processing, as established in Law 23696.

Finally, the Decree stipulates that the declaration will be subject—insofar as compatible or not opposed—to the privatization regime outlined in Chapter II of Title II of Law 27742 of Bases and Starting Points for the Freedom of the Argentine People.