AA restricts tickets sales in AR
Sep 17, 2014, 3:47 pm
#1
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AA restricts tickets sales in AR
Currency controls and the disparity between official/informal exchange rates is making for interesting times...
http://www.lanacion.com.ar/1728012-a...s-en-argentina
http://www.lanacion.com.ar/1728012-a...s-en-argentina
Sep 18, 2014, 11:58 am
#3
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Does anybody have the official statement from AA or the changed fare rules on hand?
La Nación or any mainstream (anti government) argentine newspaper is not a trusty source, and they don't actually cite any rules other than hearsay.
A travel blog confirms: http://sirchandler.com.ar/2014/09/am...sos-a-90-dias/
Does this measure affect tickets bought in the US with USD credit cards?
There is also a rumor that the fee will go up from 35% of ticket price to 50%.
La Nación or any mainstream (anti government) argentine newspaper is not a trusty source, and they don't actually cite any rules other than hearsay.
A travel blog confirms: http://sirchandler.com.ar/2014/09/am...sos-a-90-dias/
Does this measure affect tickets bought in the US with USD credit cards?
There is also a rumor that the fee will go up from 35% of ticket price to 50%.
Last edited by macintoshd; Sep 18, 2014 at 12:34 pm
Sep 18, 2014, 3:34 pm
#5
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Sep 18, 2014, 7:36 pm
#6
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President of Argentina just officially announced that American Airlines is taking part in the international campaign led by vulture funds to harm the country and her government.
She personally named James F. Albaugh (AA boardmember) as being invoked with the Blackstone group, which is one of Argentina's bondholders.
It is interesting that she came up with this response this quickly, this information was obviously given to her by the Argentine intelligence service.
It also seems very suspicious that AA hasn't posted any official rule change, only vague press statements. It seems very likely that this was a media/psyops operation to harm the Argentine currency and her government.
No other airlines have taken similar steps, and Argentina's central bank has denied any restrictions on paying USD to foreign airlines.
She personally named James F. Albaugh (AA boardmember) as being invoked with the Blackstone group, which is one of Argentina's bondholders.
It is interesting that she came up with this response this quickly, this information was obviously given to her by the Argentine intelligence service.
It also seems very suspicious that AA hasn't posted any official rule change, only vague press statements. It seems very likely that this was a media/psyops operation to harm the Argentine currency and her government.
No other airlines have taken similar steps, and Argentina's central bank has denied any restrictions on paying USD to foreign airlines.
Sep 18, 2014, 8:30 pm
#7
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Sep 19, 2014, 3:34 am
#8
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Sep 19, 2014, 8:59 pm
#9
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Obviously the Venezuelan problem -- AA has hundreds of millions of dollars they can't get out of that country -- is playing a role here, and Kirchner is a fool if she truly thinks AA is playing some sort of game to destabilize the peso. This is clearly just a company that wants to make sure it gets paid in "real money" for its tickets, and that it can repatriate those funds.
I did read a few articles on this today, and I'm wondering if the reason for the 3-month rule is just to protect AA from a depreciating currency (there is something like 40% inflation in Argentina now, and it obviously could get worse). If I buy a ticket in pesos to travel 6 months from now, isn't AA effectively getting less hard currency for that ticket because the peso will decline in value during that time period?
BTW, am I correct that anybody in Argentina could go on AA.com and buy a ticket in dollars until the end-of-schedule? So the reality is this is no big deal. Unless, of course, you're trying to play the currency game to effectively pay less for your airfare.
I did read a few articles on this today, and I'm wondering if the reason for the 3-month rule is just to protect AA from a depreciating currency (there is something like 40% inflation in Argentina now, and it obviously could get worse). If I buy a ticket in pesos to travel 6 months from now, isn't AA effectively getting less hard currency for that ticket because the peso will decline in value during that time period?
BTW, am I correct that anybody in Argentina could go on AA.com and buy a ticket in dollars until the end-of-schedule? So the reality is this is no big deal. Unless, of course, you're trying to play the currency game to effectively pay less for your airfare.
Sep 23, 2014, 10:52 am
#10
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If people expect the fee to rise from 35% to 50%, there could be a rush to purchase tickets far in advance before the change.
Citizens (and residents?) seem to have limits on how much currency they can change into dollars, so for many people, paying in dollars with a dollar-denominated credit card is not an option, even if they have such a credit card.
Citizens (and residents?) seem to have limits on how much currency they can change into dollars, so for many people, paying in dollars with a dollar-denominated credit card is not an option, even if they have such a credit card.
Sep 23, 2014, 12:23 pm
#11
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If people expect the fee to rise from 35% to 50%, there could be a rush to purchase tickets far in advance before the change.
Citizens (and residents?) seem to have limits on how much currency they can change into dollars, so for many people, paying in dollars with a dollar-denominated credit card is not an option, even if they have such a credit card.
Citizens (and residents?) seem to have limits on how much currency they can change into dollars, so for many people, paying in dollars with a dollar-denominated credit card is not an option, even if they have such a credit card.
This blog post about AA potentially pulling out of EZE is getting buzz today. I think it's more likely false than true, but I certainly don't know.
http://pizzainmotion.boardingarea.co...res-argentina/
BTW, the comments to that post are quite interesting. Is life really "getting worse" in Buenos Aires right now? And is a steak dinner US$70 with the official exchange rate?
Because of the visa reciprocity fee, I wasn't planning on crossing over to Argentina on my next trip to Chile. That seems like the right call at the moment.
Sep 24, 2014, 7:42 am
#13
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A kilo of ice cream at one of the top shops is now $160 pesos. At the official rate, that's U$S 19. At the blue rate, that's U$S 11. Luckily almost all of them have 2-for-1 deals in the supermarkets or daily deal sites.
A steak dinner for U$S 70 would be hard to find, even at the official rate. Maybe at Cabana Las Lilas...
A steak dinner for U$S 70 would be hard to find, even at the official rate. Maybe at Cabana Las Lilas...
Sep 24, 2014, 8:19 am
#14
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A kilo of ice cream at one of the top shops is now $160 pesos. At the official rate, that's U$S 19. At the blue rate, that's U$S 11. Luckily almost all of them have 2-for-1 deals in the supermarkets or daily deal sites.
A steak dinner for U$S 70 would be hard to find, even at the official rate. Maybe at Cabana Las Lilas...
A steak dinner for U$S 70 would be hard to find, even at the official rate. Maybe at Cabana Las Lilas...
Sep 24, 2014, 9:48 am
#15
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