Aerolineas Argentinas To Buy 12 Boeing 737s

February 6, 2009

Aerolineas Argentinas has signed an agreement to buy 12 Boeing 737-700s, Planning Minister Julio De Vido said on Thursday.

Argentina's government recently expropriated Aerolineas, the country's biggest airline, and cargo carrier Austral from privately held Spanish tourism group Marsans, saying the owner had operated them badly and run them into debt.

"Aerolineas Aerolineas has signed the purchase of 12 new generation 737-700s... which will be added beginning in April," De Vido said in a ceremony where the government signed a salary deal with union airline workers.

De Vido did not say how much the deal with Boeing was worth.

Before the expropriation, Marsans had signed a deal with Airbus to acquire 61 planes, some for Aerolineas Argentinas.

It was not clear whether Aerolineas will still get some of those planes.

Austral may purchase aircraft from Brazil's Embraer, De Vido said.