Argentina: tax on international airline tickets is ill-timed
As the industry waits for guidance from Argentina regarding the planned 1-Oct-2020 restart date for commercial flights, the country's government has made a questionable decision to levy a tax on international air tickets. The tax comes after the industry has warned that Argentina's prolonged closure could put the country's long term connectivity at risk.
Argentina's international travel was already depressed due to the country's troubled economic state and plummeting currency. And now the latest developments could further threaten Argentina's competitiveness.
For now, Argentina's first ultra low cost operator, Flybondi, appears to remain committed to serving the market, despite being grounded for approximately six months.
However, its commitment is resting on an assumption that the country's government will oversee Argentina's aviation industry in a fair manner.
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