Losses from Aerolineas Argentinas

Finally completed the meeting between officials of Aerolineas Argentinas and the Bicameral Committee to Monitor the State Reform and Privatization of the National Congress. Also attended by the Secretary of Transportation of the Nation John Paul Schiavi.

As always happens in Argentina celebrated the results of management do not perform less well in a clear application of the rule "Maximin" that tells us to sort the different possibilities according to their worst possible outcomes which we will take the opportunity which worst outcome is best to worst result of the alternatives.

That "best worst outcome" is displayed and exhibited so Airlines authorities as a true success.

To reach the "best worst outcome" compared a year MARSANS management in which the deficit was 91% of total company revenue and today that deficit has been reduced to 43%.

The comparison is not representative because although not miss the opportunity to disqualify the management of the Spanish group was not told that the rates were frozen coasting for four years, which the company was selling cheap affecting their profits, not Emergency regulations are economic sector although they had declared two executive decrees and also from the government effort was made to arbitrate the union conflict that finally ended with the management "MARSANS."

I should clarify that this does not imply any merit to recognize that management and the undersigned was the one who reported to the judicial and administrative anomalies now exhibited as the government committed by this group calamities employer, if so what could be called, while managed the company.

At that time everyone looked the other way and a judge shut down an incident investigation without having produced a single test.

The truth is that Aerol? NEAS ARGENTINAS, or rather its authorities, estimated a loss of $ s 387 million for the year 2011, which means a smaller loss than that recorded in 2010 which was $ 486 million s . Anyway it is difficult to verify these results in the absence of balances.

To explain the deficit turned not valid arguments are no longer sufficient, such as the rising price of fuel today means 40% of total expenditures. I remember in my tenure in the cost of fuel ARG meant 15/18 of total expenditures.

At that meeting, praised the management is not management of the company or explanation was given about the number of staff in the company, the reason for the nearly 850 pilots only fly an average of 32 hours per month when the average in activity is of 75/80 and because there are over 120 in the process of incorporation, or why they are paid salaries that far exceeds the economic prospects of the company.

It is obvious that if not for the supply of money making the company had been broken and what has not yet been weighted by the ruling party nor the opposition nor the desirability of maintaining three aviation companies such as self-ARG, SOUTHERN and surviving even LAFSA.

Neither looked at whether the money for ARG and AU may have better usage and even the irresponsible action of ANSES to lend to the company from the Sustainability Fund PENSION.

Obviously, if politically necessary to maintain one, two or a thousand aviation companies should be set in the national budget funds available for that purpose should come from taxes paid by taxpayers and funds for specific purposes.

Nor was discussed or asked why if fuel prices rise rates are not increased as it should occur in any commercial activity.

The Lord Kicillof apparent financially responsible for the management stated that the issue of fuel, "... not an excuse, the industry is in a state of emergency."

The certainty of that statement is relative but the fact is that airlines adapt measures to moderate the impact of increased costs being the closest example the LAN group has discontinued or reorganized several routes.

The president of the company stressed the fact that AU ARG and now carry 68% of cabotage, without clarifying that except LAN which operates 12 aircraft no interest in participating in the cabotage market.

The case also serves LAN as the interest or business group's strategy of international trafficking in our market especially from inside the country.

That is fatal 68% say because there is virtually no alternative.

Finally the government celebrated a "best worst result against some worse" and the opposition did not even know to ask even one or two "think tank" that are out there ....

The big question is because they are interested in the airline business, this debate is still pending ...