JACKSON FLORES / RIO DE JANEIRO
Argentinian carrier Dinar has been forced to suspend operations with its last two airworthy McDonnell-Douglas DC-9-30/40s due to lack of insurance cover. The airline has been affected by Argentina's deepening economic crisis, unfavourable foreign currency exchange and a 170% increase in fuel costs over the last six months.
The airline was reduced to two DC-9s after aviation authorities grounded the rest of its fleet. It was forced to lease aircraft to continue. The Salta-based airline's chief executive Alberto Desimone says a $6 million loan is being sought, but local analysts indicate that this would extend the company's life by only a few weeks. Grossing $120 million in 2001, Dinar does not expect to post revenues of more than $30 million this year after nearly halving the number of destinations served, and it expects losses of $170 million.
Argentinian charter airline American Falcon last month proposed acquiring Dinar as part of its plan to establish scheduled domestic and international services. It has approached other Argentinian carriers in a bid to acquire their networks.
Domestic sources indicate that Argentina's Condor Ventures and Peru's AeroContinente are interested in the airline, while American Airlines has also been linked.
Source: Flight International
