CURRENCY CONTROL American Airlines stops selling tickets in Argentine pesos

Posted on 11/26/2015

American Airlines says it has stopped taking Argentine pesos as payment for tickets because of limits on its ability to convert the money into dollars. American is continuing to operate 27 flights per week between the US and Buenos Aires, more than any other airline

However, customers in Argentina must use foreign credit cards or dollars or other foreign currencies to buy tickets from American. Airline spokeswoman Martha Thomas said Wednesday that American would try to resolve the issue with the new government of President-elect Mauricio Macri. Under outgoing President Cristina Fernandez, Argentina responded to a shortage of foreign-currency reserves by sharply limiting the amount of dollars that companies could transfer out of the country.

On Sunday, Macri defeated Fernandez's favoured candidate and will take office on Dec. 10. He campaigned on promises to revive Argentina's weak economy with free-market policies including the removal of currency controls. The Argentina dispute is similar to one between Venezuela and foreign airlines. An airline-industry trade group said in June that foreign carriers had US $3.7 billion in ticket revenue trapped in Venezuela because of currency controls. Fort Worth-based American, the world's largest airline, eliminated many flights to Venezuela last year because of the standoff. American flies to Buenos Aires from New York, Miami and Dallas-Fort Worth.