Colombian airline’s Argentina plan delayed over rule change

Avianca's bid to enter its neighbour's market has been hit by a decision to alter policy in light of an inquiry into the Argentina president over alleged conflicts of interest.

An Avianca plane lands at Santos Dumont Airport in Rio de Janeiro, Brazil. The Colombian carrier's plan has been put on hold. Ricardo Moraes / Reuters

Argentina will delay approval of the Colombian airline Avianca’s entry into the local market until a new norm governing business conflicts of interest is approved, said the Argentina transport minister Guillermo Dietrich.

Last week, a federal prosecutor asked a judge for permission to investigate the Argentina president Mauricio Macri and others over allegations he favoured the carrier in a plan to open more routes. Mr Macri’s father’s company sold another airline to Avianca last year.

“Regarding Avianca, we have decided to tie the approval process to a new rule that will be published soon and seeks to prevent possible conflict of interest,” Mr Dietrich said.

At the start of the month, Mr Macri vowed to issue decrees to crack down on conflicts of interest as prosecutors push to investigate his family’s business ties, including the deal between Avianca and the president’s father.

The elder Mr Macri, Franco, is one of Argentina’s richest men.

Last month, the president was criticised over a deal his government reached to resolve a 15-year-old debt the postal service incurred when it was owned by Franco Macri, with prosecutors claiming the deal benefited his family.

The president said at the time that the deal had been handled legally, but apologised for a lack of transparency and revoked the agreement.

* Reuters

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