Aerolineas Argentinas and Austral to merge

Aerolineas Argentinas Group announced (05-May-2020) the merger between Aerolineas Argentinas and Austral, a decision attributed to the COVID-19 pandemic. Aerolineas Argentinas Group CEO Pablo Ceriani stated: "The effort the Government of Argentina is making to maintain the company is bordering on the impossible… [and] the state is investing in its flag carrier because this generates socio-economic benefits which multiply the investment made". He added: "However, in light of such a deep crisis even beneficial investments need to be prioritised". The merger will allow the creation of a new business unit to offer MRO services to third parties. Aerolineas Argentinas will also establish a cargo business unit, which "will take advantage of the experience gained on cargo operations to Shanghai". Mr Ceriani concluded: "Companies which do not adapt to circumstances disappear. Surely that will be the fate of Aerolineas Argentinas if we do not adapt to circumstances". [more - original PR - Spanish]