President Milei pushes forward to privatise Aerolineas Argentinas: will it materialise?

Even before officially taking office in Dec-2023, Argentina's President Javier Milei expressed his desire to privatise some of the country's government-owned entities, including its flag carrier Aerolineas Argentinas.

Now Mr Milei is moving to speed up the process, but it's unclear if he'll be successful in his efforts, as the airline's unions demand higher pay and the country's legislators need to put their stamp of approval on the process.

More broadly, potential acquirers of Aerolineas Argentinas would need to conduct a careful risk-reward analysis.

Any acquisition would be rife with labour strife, and there is a distinct possibility that Argentina's political winds could quickly shift.

However, the airline is the largest operator in an emerging market, with significant opportunities to grow and stimulate traffic.