Argentina Removes Requirement for Public Sector to Use Aerolíneas Argentinas for Air Travel

The Argentine government, through Administrative Decision 1017/2024, published on November 19 in the Official Gazette, has repealed the regulation that required public sector entities to exclusively contract with Aerolíneas Argentinas and Austral Líneas Aéreas for state-funded air travel.

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This measure annuls Administrative Decision 244/2013, which had set the operational requirements under Decree 1191/2012. That decree mandated the exclusive use of these state-owned airlines for purchasing air tickets through OPTAR S.A., with exceptions only in cases of unavailability or destinations not covered by the carriers.

The repeal is part of the Emergency Decree 70/2023, which declared a public emergency in economic and financial matters until 2025, promoting a program of economic deregulation. Article 50 of the decree prohibits granting advantages or prioritizing companies in which the State is a shareholder in any legal relationship.

In this context, Decree 747/2024 had already annulled Decree 1191/2012, removing the requirement to contract exclusively with Aerolíneas Argentinas. The new Administrative Decision 1017/2024 completes this process by eliminating the associated operational regulations.

With this decision, the government aims to promote competitiveness, transparency, and equality in state contracting, allowing public entities to choose the most suitable option for air travel without restrictions favoring specific companies.

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Nevertheless, Aerolíneas Argentinas remains the sole operator serving cities such as San Rafael, Catamarca, Esquel, Formosa, La Rioja, San Luis, Paraná, Río Cuarto, Resistencia, Termas de Río Hondo, Merlo, Rosario, Santa Rosa, Santa Fe, and Viedma. Cities like Bahía Blanca, Mar del Plata, and Río Grande also receive flights from another lesser-known state-owned airline, LADE (operated by the Argentine Air Force), though with rather limited frequencies.

The resolution was signed by Chief of Cabinet Guillermo Francos and Deputy Chief of Cabinet Federico Adolfo Sturzenegger and takes effect immediately upon publication.