Airlines in Argentina to Be Bought by State

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Argentine lawmakers are looking to appropriate Aerolineas Argentinas and Austral.  The state justifies this takeover citing that the company is $833 million in debt, while the owner, Grupo Marsans, claims the company is worth $440 million.  The lower house of congress is considering the claims this week.  The Spanish owners disagree that the airlines are for “public use” and can come under nationalization laws.  Marsans has threatened to sue, but the government has halted further negotiations.

Via: AP

One Comment

Luxe traveler on December 5, 08

This is the beginning of the end. Argentina is going to become a pariah state like Venezuela, with no multinationals feeling comfortable owning a stake in anything. There’s too much fear that the government will just steal it away at will. It’s sad to see a great country with so much potential shooting itself in the foot once again.

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