Austral Líneas Aéreas
Former Argentine scheduled airline that operated as Aerolíneas Argentinas' sister carrier until its operations and brand were absorbed in 2020.
Last updated August 25, 2026
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Overview
Austral Líneas Aéreas was an Argentine scheduled airline operated by Cielos del Sur S.A. It became one of the country's principal domestic carriers and, for much of its later history, functioned alongside Aerolíneas Argentinas as that airline's sister company. Austral shared Aerolíneas Argentinas' headquarters and main Buenos Aires base at Aeroparque Jorge Newbery, while using common commercial systems including flight codes and the frequent-flyer program. Its primary business was scheduled passenger transportation within Argentina, supplemented at different points by regional services to neighboring South American destinations. The brand was formally created in June 1971 through the merger of Compañía Austral de Transportes Aéreos, commonly known as CATASACI, and Aerotransportes Litoral Argentino, or ALA. Both predecessor companies had been established in 1957. CATASACI developed a network centered on southwestern Argentina and also served selected international destinations, while Rosario-based ALA concentrated on northern Argentine routes. Their combination brought together turboprop and jet operations, including NAMC YS-11 aircraft and BAC One-Eleven aircraft, and created a carrier with broad domestic coverage. Austral's ownership changed repeatedly. It became state-owned in 1980, but attempts to return it to private ownership in 1981 and 1983 did not succeed. During this period it competed directly with Aerolíneas Argentinas on several domestic routes. Labor disagreements, particularly differences between the unions and pay structures representing the two airlines' employees, contributed to recurring industrial conflict. In 1986, a strike by Aerolíneas Argentinas pilots suspended that carrier's domestic and international services, allowing Austral and other airlines to gain traffic temporarily. The company returned to private ownership in late 1987 after its acquisition by Cielos del Sur S.A. It joined IATA in 1988. That same year, Austral suffered a fatal MD-81 accident near Posadas during an approach in poor visibility, killing all 61 people aboard. The accident became one of the most consequential events in the carrier's private-era history and intensified scrutiny of Argentine airline operations. Austral's corporate path subsequently became closely connected with Aerolíneas Argentinas. Cielos del Sur participated with Iberia in the 1990 consortium that acquired a controlling stake in Aerolíneas Argentinas, and Austral was later sold to Iberia. By the late 1990s, Aerolíneas Argentinas held a minority stake in its former competitor. The Argentine state reacquired control of Aerolíneas Argentinas and Austral in 2008; the state acquired 99.4 percent of Austral, with the remaining 0.6 percent held by employees. Argentina's Senate approved the nationalization of both airlines in September of that year. A major fleet renewal followed. Austral selected Embraer's E-190 regional jet, ordering 20 aircraft in 2009 and adding two more in 2013. By October 2013, the airline's operating fleet was composed entirely of Embraer 190s. Austral also adopted the refreshed blue-and-yellow visual identity introduced by Aerolíneas Argentinas in 2010, retaining a red cheatline as a distinguishing feature. Although it remained a separate legal and operational brand, its activities were increasingly integrated with Aerolíneas Argentinas. In May 2020, the government announced plans to merge the two airlines to reduce duplicated costs and eliminate organizational conflicts. Austral ended operations on 30 November 2020, and its brand was discontinued as its activities were absorbed into Aerolíneas Argentinas.
History
Austral's origins lay in two Argentine airlines founded in 1957. Compañía Austral de Transportes Aéreos SACI began scheduled operations in January 1958, focusing on southwestern Argentina while also serving destinations such as Montevideo, Puerto Montt, and Punta Arenas. Aerotransportes Litoral Argentino was founded in Rosario and developed routes linking that city and Buenos Aires with destinations in northern Argentina. Pan American World Airways acquired a minority interest in ALA in 1965 in exchange for aircraft support, and CATASACI acquired a substantial holding in ALA the following year. Their operations were progressively coordinated. By May 1971, ALA operated a mixed fleet of Curtiss C-46s, Douglas DC-3s and DC-6Bs, NAMC YS-11s, and other equipment across a domestic network that included Buenos Aires, Córdoba-region connections, Corrientes, Formosa, Paraná, Posadas, Resistencia, Rosario, Salta, Santa Fe, and Tucumán, as well as regional services. CATASACI operated BAC One-Eleven jets alongside turboprops and piston aircraft. The two businesses were formally combined in June 1971. In practical terms, CATASACI's operation was absorbed and rebranded as Austral Líneas Aéreas S.A., giving the new airline both YS-11 turboprops and BAC One-Eleven jetliners. The Argentine government took Austral into public ownership in 1980. Two attempted privatizations, in 1981 and 1983, failed. Austral and Aerolíneas Argentinas remained competitors on several domestic routes even though both were state-controlled. The duplication generated political and labor tensions. Aerolíneas Argentinas pilots and their union objected to perceived differences in pay and employment conditions and argued that privatizing Austral would not resolve the underlying labor dispute. A strike beginning on 1 July 1986 suspended Aerolíneas Argentinas' domestic and international flights. Austral benefited temporarily from the traffic displaced by the strike, as did other Argentine and foreign airlines. Austral returned to private ownership in late 1987 when it was acquired by Cielos del Sur S.A. The transaction attracted criticism because of questions about the buyer's airline-management experience. Austral became an IATA member in April 1988. On 12 June that year, an MD-81 crashed during a low-visibility approach to Posadas after striking a tree. The accident killed 61 people, including 22 fatalities reported in contemporary accounts of the event, and raised broader concerns about safety and the economics of lightly occupied routes. Cielos del Sur later participated with Iberia in the 1990 consortium that acquired an 85 percent stake in Aerolíneas Argentinas during its privatization. Austral was subsequently sold to Iberia, bringing the two Argentine airlines into a common ownership structure. Their relationship continued to evolve, and by July 1998 Aerolíneas Argentinas held 10 percent of Austral. The Argentine state reasserted control in July 2008, acquiring 99.4 percent of Austral's share capital; employees retained the remaining 0.6 percent. The Senate approved the nationalization of both airlines in September 2008. In the 2010s, Austral was increasingly operated as an integrated sister carrier. It shared Aerolíneas Argentinas' headquarters and Buenos Aires base, used associated commercial systems, and operated routes such as the Federal Corridor linking Bariloche, Buenos Aires, Córdoba, Iguazú, Mendoza, and Salta. The airline undertook a substantial fleet modernization with Embraer 190 aircraft. A 2009 order for 20 aircraft was followed by two additional orders in 2013, and by October 2013 the fleet was all-Embraer 190. Austral adopted Aerolíneas Argentinas' blue-and-yellow branding, with a red cheatline as its principal visual distinction. In May 2020, the government announced that Austral would be merged into Aerolíneas Argentinas. The rationale included estimated savings of approximately US$100 million, removal of duplicated corporate functions, and resolution of persistent differences between the two companies' workforces. Austral completed its final operations on 30 November 2020. Its aircraft, personnel, and activities were absorbed into Aerolíneas Argentinas, ending the independent Austral brand.
- 2020
Austral is merged into Aerolíneas Argentinas
[1]The airline announced its merger with Aerolíneas Argentinas and ended operations on 30 November.
- 2013
Two additional Embraer 190s ordered
[1]Austral ordered two more E-190 aircraft, with the first entering service in September.
- 2010
New group visual identity adopted
[1]Austral adopted the refreshed Aerolíneas Argentinas blue-and-yellow livery, retaining a red cheatline.
- 2009
Embraer 190 fleet renewal ordered
[1]Austral contracted for 20 Embraer 190 aircraft as part of a major fleet modernization program.
- 2008
Austral returns to state control
[1]The Argentine government acquired 99.4 percent of Austral's share capital; employees retained the balance.
- 1990
Cielos del Sur joins Aerolíneas Argentinas privatization consortium
[1]Cielos del Sur and Iberia formed a consortium that acquired a controlling stake in Aerolíneas Argentinas, aligning the airlines' corporate futures.
- 1988
IATA membership and Posadas accident
[1]Austral joined IATA in April and suffered the fatal MD-81 crash near Posadas in June.
- 1987
Austral returns to private ownership
[1]Cielos del Sur S.A. acquired Austral in late 1987.
- 1980
Austral becomes state-owned
[1]The Argentine government took ownership of Austral after the airline experienced poor financial performance.
- 1971
Austral Líneas Aéreas is formed
[1]CATASACI and ALA were merged, with the combined operation adopting the Austral Líneas Aéreas name.
Products and positioning
National and regional scheduled airline
Passenger air transport · 1971
Scheduled domestic passenger services
Austral's core offering was scheduled passenger transportation between Argentine cities. Its network served Buenos Aires and a broad range of provincial destinations, and it was the country's second-largest domestic scheduled airline behind Aerolíneas Argentinas for much of its later history. Services were increasingly coordinated with the Aerolíneas Argentinas network before the two brands were consolidated.
Regional passenger air transport · 1958
Regional South American services
At various points Austral and its predecessor operations served nearby international destinations in South America, including Montevideo, Puerto Montt, Punta Arenas, Antofagasta, and Asunción. These routes complemented the airline's domestic network, although the scale and composition of its international operations changed over time.
Regional jet fleet · 2010
Embraer 190 operations
The Embraer 190 became Austral's principal aircraft type after the airline undertook a major fleet renewal. A 2009 order for 20 aircraft and two additional aircraft ordered in 2013 led to an all-E-190 operating fleet by October 2013. The type was suited to domestic trunk routes and regional services with moderate demand.
Domestic route network
Federal Corridor
The Federal Corridor was a two-way domestic route linking Bariloche, Buenos Aires, Córdoba, Iguazú, Mendoza, and Salta. Although commercially operated by Aerolíneas Argentinas, the route used Austral equipment and illustrated the increasingly integrated relationship between the two airlines.
Controversies
1988
Fatal MD-81 accident near Posadas
An Austral MD-81 struck a tree during a low-visibility approach to Posadas and crashed. The accident killed all occupants and prompted scrutiny of the airline's operating conditions and route economics. The event is treated here as a safety incident rather than a proven corporate scandal.
Marketing campaigns
- 2010Aerolíneas Argentinas group rebranding
Argentina
Austral adopted the refreshed group identity built around blue and yellow associated with the Argentine flag and sun. Its aircraft retained a red cheatline to distinguish the Austral operation from Aerolíneas Argentinas.
Outcome. The livery aligned Austral more closely with its parent and sister airline while preserving a limited visual distinction.
Brand decisions
2020
Merge Austral into Aerolíneas ArgentinasM&ABackground
The two state-controlled airlines had overlapping functions and continuing differences between employee unions and operating structures.
Action taken
The government announced a merger intended to remove duplication and save an estimated US$100 million. Austral ceased operations on 30 November 2020.
Aftermath
Austral's activities and brand were absorbed into Aerolíneas Argentinas, ending Austral as an independent airline.
Estimated merger savings. Approximately US$100 million estimated savings (2020 merger announcement)
2009
Approve Embraer 190 fleet renewalProduct launchBackground
Austral needed to modernize a mixed and aging fleet while maintaining domestic and regional capacity.
Action taken
The airline signed an agreement for 20 Embraer 190 aircraft. The reported transaction value was approximately US$600 million, with 85 percent financing from BNDES.
Aftermath
The E-190 became the foundation of Austral's later operating fleet, which was all-Embraer 190 by October 2013.
Aircraft order value. Approximately US$600 million (2009 order; reported in the source material)
2008
Return Austral to state controlM&ABackground
The Argentine government moved to reassert control over the country's flag carrier and its affiliated airline after the private ownership period.
Action taken
The state acquired 99.4 percent of Austral's share capital, leaving 0.6 percent with employees. The Senate subsequently approved nationalization of Austral and Aerolíneas Argentinas.
Aftermath
Austral operated as part of the state-controlled Aerolíneas Argentinas group and became progressively more integrated with its sister airline.
Sources1 sources
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