Skift Take

Deregulation is fun, right? We'll have to see how the market evolves in Argentina. Maybe someday consumers will miss some aspects of regulation. But for now, people seem happy with $7 fares.

Cheap travel has arrived in Argentina.

Airlines are offering major discounts on domestic flights after Argentina’s pro-business government, in an effort to boost tourism, scrapped a regulation that set a minimum price that carriers were required to charge their clients.

Aerolineas Argentinas website crashed Wednesday morning as customers rushed to grab flights for 499 pesos ($18.20). Low-cost carrier FlyBondi slashed prices on round-trip flights between Buenos Aires and Bariloche to as low as 199 pesos ($7.26), according to its website. Regional airline Latam offered flights between Buenos Aires and Cordoba for 449 pesos. Customers must buy flights 30 days in advance of the trip to qualify for the price cut.

It’s a major decline from current prices. A flight in August from Buenos Aires to Mendoza, the capital of the nation’s famed wine region, costs 2,785 pesos with Aerolineas Argentinas. FlyBondi and Latam are offering the same route for 699 and 679 pesos, respectively.

The government’s decision to open up Argentina to low-cost carriers is already a controversial issue in Argentina because powerful labor unions warn it will lead to job losses at Aerolineas, whose employees staged a one-day strike on July 13. They protested against low airfares, which they argue would hinder their ability to compete for domestic flights.

©2018 Bloomberg L.P.

This article was written by Patrick Gillespie from Bloomberg and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to [email protected]

November 16, 2022
Dallas-Fort Worth, TX and Online
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Tags: aerolineas argentinas, argentina, latam

Photo credit: FlyBondi is one of several airlines in Argentina dropping prices, as the government has loosened restrictions on what fares can be sold 30 days before departure. Pictured is one of the airline's Boeing 737s. Bloomberg