Argentina reduces Aerolineas subsidy in 2014 budget

Madrid
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Aerolineas Argentinas, which has required billions of dollars in state subsidies since its renationalisation in 2008, will receive in 2014 2.8 billion pesos ($475 million) in state aid, 30% less than what is planned for this year.

According to Aerolineas Argentinas, a projected 20% increase in passengers for this year, reaching 8.4 million travellers, and a "more efficient operation" allows the company to reduce its need for government money.

The management of Aerolineas Argentinas, which is for its size one of the heaviest loss-making airlines in the industry, is facing increasing criticism from the parliamentary opposition, which accuses it of having "politicised" the company by prioritising political favors over operational efficiency.

In a recent parliamentary appearance, Aerolineas Argentina's president Mariano Recalde presented a number of milestones which have been reached recently, such as the renewal of the fleet and the restructuring of the network, which should allow the airline to become profitable "by 2015".