Flybondi bank accounts embargoed over 1.5 billion peso tax debt

Argentine federal courts have ordered a general embargo on the bank accounts of low-cost airline Flybondi to secure the payment of tax debts. The measure was requested by the Agencia de Recaudación y Control Aduanero (ARCA) following several tax execution lawsuits.

The total amount of the embargo is estimated to be approximately 1.5 billion to 1.75 billion pesos, which includes a 15% addition for interest and legal costs. The debt primarily stems from unpaid Income Tax withholdings, Value Added Tax (IVA) retentions, and Personal Assets Tax obligations.

While the judicial measure aims to guarantee the collection of funds owed to the state, it does not currently imply a cessation of the airline's operational activities or a declaration of bankruptcy. However, the financial pressure coincides with other reported challenges for the company, including fleet reductions due to aircraft leasing issues and labor tensions.