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The unprecedented situation that Aerolíneas Argentinas is experiencing has hatched in the last hours: with its planes on the ground and unable to resume operations until at least September 1, the state company applied drastic measures on 75% of its 11,900 employees.

"The measure reaches 7,500 of the 11,900 employees," a company spokesperson, who competes with Iberia and Air Europa on the highly demanded route between Buenos Aires and Madrid , told EL MUNDO . Those 7,500 employees will be licensed and will collect 75% of their salaries in the next two months.

"We experienced a drop in our income of the order of 97%, leaving practically no other financial aid than the contributions we receive from the national state," added the sources. Airlines generated in 2019 some 1,700 million dollars in own income, which were completed with a contribution of 680 million dollars from the State, since the company is in deficit. For this year, an injection of public money of 880 million dollars was foreseen.

In addition to adjusting salary expenses, the company postponed non-essential payments , negotiated with fuel suppliers and seeks to reschedule payments with the National Bank for Economic and Social Development of Brazil for the purchase of Embraer aircraft, as well as with the Banco de la Nación Argentina .

Argentina is the eighth largest country in the world, a territory six times larger than Spain. Its 45 million inhabitants have been subjected since March 20 to a strict quarantine that includes the complete cessation of air operations, except for a few special ones to transport goods or repatriate Argentines and residents stranded in other countries. The issuance of air tickets was prohibited until September.

The management of the company must now negotiate with six different unions (pilots, technicians, administrators, hierarchical personnel, etc.) the implementation of the agreement. Weeks ago, its president, Pablo Ceriani, announced the merger of Aerolineas and Austral, mainly dedicated to domestic flights, and warned that the 75-year-old company is in danger of disappearing if the appropriate measures are not taken to weather.

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