Argentinian airline set to step into LAPA's shoes

JACKSON FLORES / RIO DE JANEIRO

Five days before handing over to newly elected Argentinian president Néstor Kirchener, incumbent Eduardo Duhalde signed a decree creating a new carrier in Argentina to employ the routes and staff of grounded LAPA. The new airline will be a subsidiary of Intercargo, a state-owned enterprise managed by the country's economy ministry and the Argentinian air force.

The government will absorb LAPA's debts, fund the lease of five or six aircraft and guarantee operations. Steps are to be taken within 180 days to prepare the carrier for privatisation. It will operate most of LAPA's profitable scheduled routes.

Aerolineas Argentinas' chief executive Antonio Mata, referring to Argentinian air force-operated airline LADE, says the Argentinian government should not own and operate two state-owned airlines.

Source: Flight International