The 2023 Budget bill contains a strong cut in funds to Aerolineas Argentinas. The National State plans to transfer 90,000 million Argentine pesos (622 million dollars) to the public company next year, which implies a nominal increase of just over 23% compared to the estimated contributions for 2022.
The nominal increase is just over a third of the government’s inflation guideline (60% as of December) and even less when compared to the inflation expected by private consultants, around 85 percent.
The Government predicted that Airlines will have revenues of 492,328.6 million pesos (3,403 million dollars) during 2023, “generated mainly by the provision of the service as a result of the partial recovery expected for the commercial activity (402,388.6 million, approximately 2,781 million dollars)” .
The resources are completed with “the planned transfers from the National Treasury for 90,000 million pesos,” according to the text prepared by the Ministry of Finance.
“An increase in total expenses of 39.8% is expected, among which operating expenses stand out (92% of total expenses) for the development of the company’s activity, accompanied by expenditures for investment, estimated at 31,185.3 million pesos (215 million dollars) by 2023,” the text continues.
According to spokesmen for the state airline, the state budgeted 72.908 million pesos (504 million dollars) for 2022, a figure that already included an “adjustment” ordered by former Economy Minister Martín Guzmán. But the Government has been stepping on the execution of transfers to Airlines. First Guzmán, then Silvina Batakis and now Sergio Massa dispensed the funds planned to cover the company’s operating redundancy.
From January to date, the Government earned 34,705 million pesos (240 million dollars) for the public company, or 48% of the total budgeted. The resources sent are computed as “financial contributions” by the shareholder (the State) and not as subsidies.
The figure accrued until this Monday shows that the Executive put the handbrake on the sending of resources. According to the Argentine Budget Association (ASAP), as of July 31, 34.335 million pesos (237 million dollars) had been approved.
“Guzmán closed the faucet and did not reopen; Aerolineas is supported by the sale of tickets and different financial strategies,” they maintained in the company headed by Pablo Ceriani. Airlines estimates that it will close 2022 with a contribution from the State that would be around 60% of the almost 73,000 million pesos (504 million dollars) scheduled.
Aerolineas Argentinas lowered its operating red to 438 million dollars in 2021, according to the company’s balance sheets. In the 2020 pandemic, the loss had been 654 million dollars. In 2019, of 667 million dollars.
The negative balance is covered with capital contributions from the State or with debt. As a reference, the 90,000 million pesos budgeted for 2023 would represent 333 million official dollars planned for the end of next year.
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