If we are to be fair about this, then a good deal of Aerolíneas' troubles are caused by serious problems with the civil radar system in BsAs - and AFAIK elsewhere in Argentina.
It is also very costly to send a plane via BsAs on the routes between e.g. Córdoba and Tucumán or Salta and Mendoza, twice the actual distance or more, but a direct route would have too few passengers for daily flights.
Keeping Aerolíneas alive on subsidized tickets for Argentinos is unquestionably a matter of national pride. Without subsidies, so few Argentinos could afford to fly, there would be very few domestic routes - probably none interprovince.
Also, no doubt Aerolíneas is in a bad financial shape, but it is definitively not alone.
During the last ten years many airlines worldwide have taken large losses and have been on the brink of bankrupcy (or over the edge), not only third and second tier airlines, but also some first tier lines.
What is the state of e.g. Varig (my old favorite between Europa and South America - I remember once I had 12 kg overweight and cash in hand but the Varig guy at check-in just said "but you are not overweight yourself" and gave the SA handwave = forget about it), Swissair, Mexicana, Sterling Airlines, Air America, Japan Airlines, ...?
Some R.I.P. and others taken over by others or "merged" a.k.a. taken over.
