Argentine Airline Nationalization Dispute Deepens

The Spanish owner of Argentina’s largest airline says it will sue if the Argentine government expropriates the carrier before reaching an agreement on its value. Vicente Munoz is the director of Madrid-based Grupo Marsans, which controls Aerolineas Argentinas and its subsidiary Austral.

He told Buenos Aires-based Mitre radio Tuesday that the possible expropriation being debated in congress would be an illegal “confiscation.”

Munoz says the government appears to be imposing a low valuation on the airline and is backing away from a deal to let an independent party assess the value. He says Marsans will sue Argentina in an international court if the government doesn’t pay what the air carrier is worth.