Argentine aviation will face continuing challenges

Significance President Javier Milei aims to increase competition in the domestic airline industry, where state-owned Aerolineas Argentinas (AR) retains the largest market share, although penetration by low-cost carriers (LCCs) has increased steadily in the last decade. The government also seeks to develop regional airlines to connect smaller cities, attract foreign investment and promote tourism. Impacts The unstable political and macroeconomic environment, high tax pressure and infrastructure problems may discourage foreign investors. Deregulation may help to promote the development of regional airlines. Low incomes and population density will make it necessary to continue subsidising unprofitable routes. Sector unions will reject the possibility of allowing foreign crew to work on domestic flights as a result of open-skies deals.