The long-running saga to save Aerolineas Argentinas appears to have taken a turn for the better as a mid-October shareholders meeting constructed a deal to inject some $450 million into the airline, guarantee jobs and appoint a new chief executive.

The deal was struck between Spanish state holding company and main shareholder SEPI, the Argentinean government, which holds a 5% stake, and four of the airline's unions. The other three airline unions have still to approve the plan, which will see SEPI putting in $420 million and the Argentine government $32 million. Alongside the cash injection, cost savings of $139 million will need to made.

Operationally, the airline will be reorganised into a holding company called Grupo Aero Argentino. Earlier proposals to cut around 1,500 jobs looks to have been shelved, although staff numbers can be reduced through early retirement schemes and natural attrition. The new chief executive has yet to be named.

Source: Airline Business