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This week, we move on to Argentina.

Aerolíneas Argentinas is the state-owned flag carrier. Aerolíneas Argentinas has been subject to the government’s extreme inefficiency, being run as a symbol of national pride instead of as a business.

Source: Wikimedia

However, Aerolíneas also are benefited by being owned by the government. They are protected by the government from competition. For example, LAN Argentina was recently thrown out of Beunos Aires’ domestic airport in order to reduce competition for Aerolíneas. This protectionism is unhealthy for the airline industry and detrimental to customers, but it props Aerolíneas up.

They are planning to join Skyteam in 2012. As I explained here, they are one of SkyTeam’s only options. If they weren’t, I sincerely doubt that SkyTeam would choose the airline to be a member. However, SkyTeam is forced to accept it in order to have a presence in South America. Allowing Aerolíneas into the alliance will also have the effect of giving SkyTeam carriers more leeway with the Argentinian government. SkyTeam will likely be favored for route authorities and slot allocations.

Aerolíneas Argentinas operates 48 aircraft to 56 destinations worldwide, from their hubs in Buenos Aires (international and domestic routes depart from different airports).

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