OPC 5 Cost Estimates 5 FISCAL IMPACT OF BILL TO CREATE THE PROGRAM “PATRIA”

FISCAL IMPACT OF BILL TO CREATE THE PROGRAM “PATRIA”

December 22, 2020

The Bill creates the program PATRIA with the purpose of promoting air routes throughout the national territory. For the implementation of the program, Líneas Aéreas del Estado (LADE) will be the implementing and executing entity and will use Air Force aircraft and personnel. For its part, the Ministry of Defense will provide maintenance service and new equipment for the aircraft.
The fiscal effect of the program is estimated based on three scenarios:

  1.  The program covers maintenance, fuel, and pilot training cost; and revenues from the sale of tickets would cover LADE’s operation costs. A cost of AR$1.33 billion for 2021, and AR$2.01 billion was estimated for 2022.
  2. The program covers maintenance costs, 75% of fuel, and 75% of pilot training costs; and revenues from the sale of tickets would cover 25% of fuel, pilot training costs y and LADE’s operation costs. A cost of AR$1.15 billion for 2021, and AR$1.74 billion was estimated for 2022.
  3. The program covers maintenance costs, and revenues from the sale of tickets would cover 50% of fuel, pilot training, and LADE’s operation costs. A cost of AR$1.01 billion for 2021, and AR$1.55 billion was estimated for 2022.

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