Aerolíneas Argentinas & Austral Líneas Aéreas To Merge

The first merger of this crisis.

In the midst of this pandemic, the Argentine Government has announced it will merge Austral Líneas Aéreas with Aerolíneas Argentinas.

Austral is already a wholly-owned subsidiary of Aerolíneas Argentinas since 1990 and operates mostly domestic flights with a fleet of 26 Embraer 190s.

From what it sounds like, the Austral Líneas Aéreas brand will disappear as the assets will be absorbed into Aerolíneas Argentinas.

Austral Líneas Aéreas Embraer 190

Aerolíneas Argentinas CEO Pablo Cerioni:

“The global crisis caused by COVID-19 had a total impact on the aviation sector and we do not know how long this situation will last. Everything indicates that there are still several critical months ahead, months without income or regular operations; which means a tremendous impact for our industry and the economy in general. Without income, and I repeat, we do not know how long many airlines in the region and the world will disappear.”

With this merger, two business units will be created - a maintenance service for other airlines as well as one for cargo services by using experience gained from the airline’s recent Shanghai cargo flight.

This decision also came with the fact that the Argentine Government has banned all commercial flights until September.




This looks like the end of the Austral Líneas Aéreas brand. To be honest, this likely isn’t the last merger of the crisis. There are some reports that Pobeda and Rossiya (subsidiaries of Aeroflot) may merge into Aeroflot. With these mergers however, airlines will be able to preserve more assets instead of allowing an airline to completely collapse.


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