Argentina buys back airline

Argentina’s government is to buy back troubled Aerolineas Argentinas and its subsidiary Austral from a Spanish travel conglomerate.

The struggling company, which was privatised in 1991, returns to the hands of the state burdened with an estimated £450 million debt, Argentine president Cristina Fernandez said.

The agreement signed with executives from Spain’s Grupo Marsans delivers control over the two airlines to the government within 60 days. The two carriers together account for about 85% of domestic air traffic.