As relations continue to thaw between Aerolineas Argentinas and the Argentinian government, the Marsans group that owns the airline has agreed to invest $1 billion between now and 2009.
This is part of a broader accord in which the government has already relaxed domestic fare caps and promised to review the airline's financial statements. Withholding approval of its financial statements, based on claims that Aerolineas wrote down debts owed to the government, has until now blocked the airline's plans to launch a local private placement and a follow-on public offering.
Without an agreement to resolve this impasse, Marsans group refused to spend anything on Aerolineas, causing the grounding earlier this year of 14 aircraft which required maintenance. The first priority now is to put those jets, including an Airbus A340 used to serve New York, back into service and then start a major fleet renewal.
Source: Airline Business
