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Uruguay's Pluna warns of collapse, but CEO's missive may be more political than financial

Analysis

Pluna CEO Matthias Campiani has issued a warning of a potential collapse of Uruguay's flag carrier, driven by sluggish Latin American economies and the restrictive policies of the region's governments, particularly Argentina, which has practiced fierce protectionism since the renationalisation of flag carrier Aerolineas Argentinas in 2008.

Yet Uruguay's challenges in Argentina - where Pluna deploys 21% of international seats - are not new, as evidenced by the carrier's recent strategy to expand into Brazil instead. Argentina's protectionism has understandably been a sore point for Mr Campiani, who is resolute and will see that objectives are accomplished. While Pluna has encountered losses, it has in recent times broken even. There is no doubt Pluna has suffered from protectionism and like most carriers is seeing a downturn from global economic events, but a collapse is difficult to envision.

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