(MENAFN) Argentina has enacted a landmark presidential decree, published in the Official Gazette on Wednesday, that marks a significant shift in its civil aviation sector. The decree allows for competition among airlines and grants them autonomy in setting ticket prices, a move aimed at liberalizing and revitalizing the country's aviation industry. These new regulations also include provisions for the allocation of airport capacity, routes, and the criteria for granting take-off and landing rights at international airports, aligning with guidelines from the International Air Transport Association and the Airports Council International.

This reform is part of a broader economic strategy spearheaded by Argentina's president, Javier Milei, a liberal economist known for his ambitious reform agenda. Milei aims to bring about profound changes in Argentina's economic landscape, which has been plagued by longstanding challenges including a bloated state apparatus, low industrial productivity, and a sizable informal economy that reduces tax revenues.

In late June, the Argentine Congress approved a controversial reform package proposed by Milei. This package includes privatization plans for state-owned enterprises, tax incentives to attract major investors, and sweeping labor market and tax reforms. These measures are seen as critical steps to address Argentina's severe economic crisis and to stimulate economic growth.

Under Milei's leadership, the government has already initiated austerity measures, including significant cuts in public sector jobs, reductions in subsidies, and reforms to social programs. These efforts are part of Milei's strategy to streamline government spending, increase efficiency, and restore fiscal stability in South America's second-largest economy.

The liberalization of Argentina's civil aviation sector is expected to foster competition, improve service quality, and potentially reduce air travel costs for consumers. This move signals Argentina's commitment to economic reform and its determination to attract investment and stimulate growth in key sectors of its economy. 

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