Aerolíneas Argentinas will spend $30 million on launching four subsidiaries in neighbouring countries from September, chief executive Antonio Mata says.
The carriers will operate from Bolivia, Chile, Paraguay and Uruguay, the first of which will start operations with $7.5 million funding operating two Boeing 737- 300s transferred from Aerolíneas and one 747-300 that the airline is acquiring. The new carriers are part of the airline's recovery plan, unveiled in December last year after 14 months in administration.
Mata confirms that Aerolíneas will open routes from Buenos Aires to Beijing and Tokyo, and that 2003 will see an administrative and operational merger between the carrier and its domestic subsidiary Austral. He expects the merger will eliminate duplicated administrative and support costs, adding "the Austral name will be employed in other business efforts", such as a new low-cost carrier.
Mata forecasts revenues of $1.18 billion and $35-48 million net profits in 2003, compared with an estimated $1.1 billion revenue and zero profit in 2002. He also predicts traffic will grow 31% in 2003 to 5.6 million passengers.
Source: Flight International
