Today’s entry analyzes recent happenings around the Río de
la Plata.
Aerolíneas Vetos LAN
By consensus, state-run Aerolíneas
Argentinas is a disaster for its shoddy service, inability to keep its
schedules, and propensity to hemorrhage money. After its renationalization in
2008, it came under the dubious control of the Peronist youth wing La Cámpora and, by all
accounts, things have just gotten worse, with losses averaging upwards of US$1
million daily.
When counseling potential visitors about travel to
Argentina, I tell them to avoid Aerolíneas whenever possible, in favor of LAN Argentina, the local
affiliate of Chile’s LAN Airlines. Unfortunately,
LAN has fewer planes and flights and, despite the company’s desire to expand
its services, it will not be able to do so. That’s because, according
to the Buenos Aires daily La Nación, the Administración Nacional de
Aviación Civil (Civil Aviation Administration) has rejected LAN’s request to
add a new Airbus 320 that would have allowed the airline to expand its
Patagonian routes.
Given the current government’s extreme protectionism, its
rejection of LAN isn’t exactly startling, but it comes at great cost. The
country loses a US$40 million investment that would have improved and expanded
air services for Argentines and visitors alike, and created a number of
permanent jobs. Anonymous sources quoted by La Nación suggest that the
government was worried that LAN would take business away from Aerolíneas.
In a sense, such worries are legitimate. LAN is an exemplary
airline, even as it endures the difficulties of operating under an often
capricious Argentine political and economic system. Aerolíneas, on the other
hand, embodies that very capriciousness and, on a level playing field, is
probably incapable of competing with LAN.
Mujica’s Backhand Compliment
Uruguay’s tourism sector is concerned about this coming
summer because of the so-called “currency
clamp” instituted by the Argentine government, about which I have written
several times recently. Uruguayan President José Mujica, though,
doesn’t appear to share that concern, even though his country’s prosperity
depends, in part, on the annual Argentine invasion of Punta del Este (pictured below).
That’s because, said Mujica as quoted
in Saturday’s Buenos Aires Herald, “Argentines are champions when it comes
to taking dollars abroad! World champions!” despite the restrictions.
“Argentines distrust their currency, save in dollars and somehow manage to make
it.” Whether the Argentine government shares Mujica’s admiration for its
cleverly evasive citizens is doubtful.
Tango by the River
As announced the
other day, there’s been a postponement of my digital slide lecture on Buenos Aires at Tango by the River in Sacramento, which will now take place Friday, October 26th, at 6 p.m.
Limited to a maximum
of 50 people, the event will also include tango performances; admission costs
$10 at the door, or $8 in advance. I have spoken here several times before, and
we always sell out, so plan in advance. Signed copies of my Moon Handbooks on Argentina, Buenos Aires, Chile and Patagonia will be available at discount prices.
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