The Argentine government plans to merge Aerolineas Argentinas and Austral Lineas Aereas to cope with the impact from the coronavirus crisis. "Companies that do not adapt to the needs of their times disappear, " warns Group CEO Pablo Ceriani, who supports the combination of Aerolineas with the subsidiary airline unit.

Ceriani expects several critical months ahead, months without income or regular operations, which will impact the industry and the economy in general.  

The government, which owns both airlines, aims to benefit from synergies and reduce overhead, in part by utilizing a common maintenance facility and joining pilots and cabin crew.

The merger will allow the creation of new business units in aircraft maintenance and cargo, further expanding the opportunities for the company.

The process will begin at the next shareholders' meeting and it is estimated that it will have concluded by the end of 2020.