Sol Líneas Aéreas (Rosario Islas Malvinas) has ceased operations a day after Aerolíneas Argentinas (AR, Buenos Aires Jorge Newbery) cancelled its longstanding partnership agreement with the domestic operator.
As part of her initial business restructuring plans, the newly appointed head of Aerolineas Argentinas, Isela Costantini, last week ended the ARS125 million (USD9.44 million) in subsidies her airline had allocated Sol as part of their Capacity Purchase Agreement (CPA) signed back in 2006 and which was renewed in August of last year. Without the funds, Sol said it could no longer sustain operations.
"Sol Lineas Aereas SA, a privately held company owned by Argentine and Spanish shareholders, announces that as of Friday, January 15 this year it will cease all operations," the airline said in a statement. "The decision was taken as a result of the termination of the cooperation agreement that was signed with Aerolineas Argentinas, which has left the company in a situation of economic uncertainty rendering it impossible to continue operations."
On the back of last week's announcement, Spain's Air Nostrum (YW, Valencia Manises), which held a 40+% stake in Sol, has invoked an exit clause in its partnership agreement with Sol. The clause had mandated the continued partnership with Aerolineas Argentinas as the basis for Air Nostrum's investment in Sol.
Owned by the Transatlántica consortium, Sol had operated two Saab 340As and two Saab 340Bs, alongside three CRJ200s (sourced from Air Nostrum for fleet renewal purposes), on flights connecting nine destinations across Argentina as well as Uruguay.
