Argentina aviation market struggles amid failed privatization and carrier issues

The Argentine aviation market is facing challenges despite deregulation efforts. The recent attempt to privatize Intercargo resulted in a deserted bidding process, failing to attract investors.

Low-cost carrier Flybondi has encountered significant regulatory issues. Brazilian aviation authorities prohibited the airline from selling tickets for its four routes in Brazil—including Rio de Janeiro, Florianópolis, Maceió, and Salvador—following the cancellation of four out of five scheduled flights in July and a failure to respond to information requests.

Industry specialists noted that this winter season was the first since 2012 where the domestic tourist market was effectively served by only two companies, Aerolíneas Argentinas and Jet Smart, as Flybondi's service levels were deemed unreliable. Since 2012, several other regular domestic carriers, including LAN Argentina, LASA, Avianca Argentina, SOL, and Norwegian, have exited the market.