These savings are the result of the renegotiation of the agreement with the main reservation system provider.
Buenos Aires, June 13th, 2018 – As a part of its savings policy, cut governmental subsidies and become self-sustainable, Aerolíneas Argentinas saved 29 million dollars per year in the agreements with its reservation, check-in and airport management systems.
As from 1998, when Aerolíneas Argentinas hired the services of Sabre as its main reservation system provider, the agreement had never been reviewed. The result of this renegotiation is a 30% reduction in the payment of the hired services.
This new agreement also entails major improvements in the contractual obligations and the functions of the reservation systems, which inures to the benefit of passengers since they will now enjoy a better service.
“This initiative was one of the objectives that we had set as a part of our sound and responsible management. We are committed to the Argentine people, who are the actual owners of the company and who want their money to be managed in a transparent fashion,” expressed Mario Dell’Acqua, President of Aerolíneas Group.
It is worth mentioning that Aerolíneas Argentinas is implementing a consistent cost reduction policy based on the optimization of resources, fuel, aviation supplies and on the continuous revision of the existing agreements. Along the same lines, during the year 2017, Aerolíneas Argentinas saved 81 million dollars.
By the same token, during the month of May, the company announced that it will stop paying commissions to travel agencies for sales of domestic flights, which will result in a 4 million dollar saving.
During H2 2018, the company will continue to implement cost reduction initiatives for an aggregate amount of 55,800,000 dollars, including the reservation systems, aviation materials, spare parts and other services.
The continuous reduction in losses, the operation growth and the saving initiatives implemented by the company explain the wane in the contributions made by the Argentine Government to the company. These contributions had averaged around USD 678 million per year for a decade, and amounted to 302 million in 2016, 183 million in 2017 and only 82 million in 2018.