New Argentinian President Milei was videotaped flying commercial – on state carrier Aerolineas Argentinas, which he has proposed to privatize turning ownership over to employees. Milei has also issued a decree opening Argentinian aviation up to foreign competition. Any world carrier would be able to fly to the country and also to engage in cabotage, flying domestic passengers within the country.
President Milei is welcomed by fellow passengers as he flies commercial to reduce government spending in Argentina.
— Visegrád 24 (@visegrad24) December 30, 2023
Aerolineas Argentinas has lost $8 billion of the government’s money since it was re-nationalized in 2008. Aerolineas Argentinas has been a basket case for decades. Pulling the plug on inefficient state enterprises is part of how Argentina can get inflation and de-growth under control. The country is facing 140% inflation and 5% negative GDP growth. Their economy is actually shrinking. Poverty has grown eight-fold in a decade. Just 5% of people lived in poverty in Argentina ten years ago, now 40% do.
This is a country that saw its peak a century ago and has largely been in decline under authoritarian leaders since then. That’s both why the people of Argentina have finally spoken up for something different, and why drastic policy changes are needed.
However the plan to open the country to airline competition only works if it survives being overturned by the legislature (which the President does not control) and being overturned by the courts. Until there’s clarity and stability there’s unlikely to be enough confidence on the part of airlines to invest in an Argentinian operation. And the economy needs to be turned around for those investments to turn profitable.
Javier Milei was spotted yesterday flying commercial to Mar de Plata.
It’s his personal vacations so he used his personal money.
Last week, the President of Spain used the Presidential Private Jet to go to Toledo for vacations, which was 93 miles away from Madrid.
The… pic.twitter.com/UrBpeCyRjt
— Ada Lluch 🇪🇸 (@ada_lluch) December 30, 2023