Financial Times FT.com

Argentina faces court battle over airline

By Jude Webber in Buenos Aires

Published: September 30 2008 18:57 | Last updated: September 30 2008 18:57

Argentina’s government could face a bitter legal battle over the renationalisation of Aerolineas Argentinas, the flag carrier.

Burdened by debts of $890m, a bloated payroll and paralysed by strikes, the airline was on the brink of collapse when it was taken back under state stewardship in July after almost 20 years in Spanish hands.

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