All In One Day

Booking a flight from BA to Miami, round trip, lowest cost on Despegar, is $15,756 pesos. Booking a trip from Miami to BA, round trip, is $11,080 pesos. Trip planned from Nov 23 to Nov 29, same dates, same airports. Different airlines (Air Mexico was the cheapest for BA origin - the price nearly doubles for other Air Mexico flights and gets much worse for other airlines). I don't understand why the base price is higher starting in BA, and both flights have AFIP taxes involved, but the one originating in the US doesn't have an additional item of "cargos" listed as well.

The cheaper flight I mention from BA to Miami, on the first page, the prices range from $15,756 all the way to $24,892. Originating in Miami, the range goes from $11,080 to $14,035.

Just to try another destination for comparison, I tried from Miami to London, and London to Miami round trip. US origination = $11,191 pesos while UK origin = $10,035. Pretty close - roughly 1% more expensive to originate in the States than in the UK. Of course, both of those prices include the AFIP tax since I'm in BA looking for flights. The AFIP tax for US origination is $2,100 pesos, while UK origin is $1,700 pesos.

How exactly are the "subsidies" (if you want to call "subsidies" to the currency restrictions, the extra taxes, and the government's blind "necessity" to keep the peso far, far over-valued for what I don't think are such "altruistic" motives as you seem to want to project onto the government, Bradly. I can understand people thinking of gas, transportation and child subsidies as helpful, but things that work to make things worse?) "helping" anyone when it comes to airline flights? Or anything else for that matter. Given that both prices are in pesos and the only difference is the origin, I'd say that the "subsidies" have caused higher prices for airline flights out of the country, at least to the US, rather than actually help anyone.

I see about a 30% over-inflated price for the flights originating in BA going to Miami with the cheapest flight available - on the cheapest flight, certainly not the majority and a very specific lack of choices in what airlines you can fly (one) at that lowest price. It gets much worse from there

Respectfully, I'm simply not understanding your logic in calling those hypocritical (it seems that's what you're saying) who are complaining about the latest currency restrictions implemented by the government because they have so wasted their reserves trying to delay the inevitable when there isn't even a benefit to begin with, just because people are complaining about it. It seems counter-intuitive to me and what I see as facts certainly don't support the position that the "subsidies" in question have helped anyone.

It's not the "subsidies" being pulled that is causing the problem. The high prices on airline flights out of Argentina wouldn't even be there if not for those particular "subsidies" and this latest round of currency restrictions is just exacerbating this particular market, as most government interventions do whether intended, or worried about, or not.
 
ElQueso - I thought you were going to agree with everything I had to say. ;) This is a win for the free market! haha

Prices are often different depending on where you depart. That has nothing to do with the issue. You'd need to compare the cost of a ticket on an Argentine site that sells in pesos to the cost of a ticket in dollars (with the same departure city). With the Argentine site, you'd need to divide that number by the blue exchange rate, which is more or less the market rate.

The currency restrictions are not the subsidy. The subsidy is the Argentine government selling cheap dollars (for far less than they're worth), and that is effectively a subsidy on dollars.

Those low price fares in pesos (versus the real value of the fare) were subsidized by the government.
 
Bradly: I agree that you cannot compare two routes in the different direction - price differences there are common, and not because of political decisions, but mostly due to pricing strategies of the airlines. However, were international airfares after the introduction of the 3x% tax for foreign goods really subsidized? In my obviously limited sample size of the flights I looked up, it wasn't cheaper to book a flight here using AR$ (with dolar blue rate) compared buying the same flight abroad (which was the case before the mentioned tax).
 
In my obviously limited sample size of the flights I looked up, it wasn't cheaper to book a flight here using AR$ (with dolar blue rate) compared buying the same flight abroad (which was the case before the mentioned tax).

Right, so in blue dollars, the fares are comparable.

If you buy the ticket in pesos as a nonresident, you have to pay the 35 percent tax, and there is no refund for it.

However, if you're a resident, you can buy the fares in pesos, pay the 35 percent, and eventually get it refunded to you: http://www.lanacion....-en-el-exterior

Even if you didn't get it refunded to you, it's still not that bad, considering the gap between the official dollar and the blue dollar is approximately 65 percent. (Keep in mind that I am not talking about paying in dollars or pesos, but paying what the ticket is really worth. Nonetheless, if you have dollar income and you are a permanent resident, it makes sense [or it used to] to buy the tickets in ARS.)

The "subsidy" isn't a subsidy by defnition. It's effectively a subsidy, however, because the government is knowingly selling dollars at a price that is below the market rate.
 
Bradly, thanks for explaining your point of view. Two points I want to add: first, the actual price for tickets in AR$ were corresponding to the US$ price when bought abrought using the Dolar blue rate, not the official rate (at least for the tickets I was looking up), so in this cases I don't see a real subsidy. And second, I'd agree that if you claim back a part of the tax, this is basically a subsidy, but in my opinion this just shows how this system leads to wealth distribution effects, that are basically favouring the higher incomes and thus are contrary to the self-proclaimed goal of the government. To make it clear, I'm not against certain types of subsidies at all (for instance, I think the one on public transport is perfectly fine and makes sense), but the implementation of many other subsidies here work in a direction which are not very goal-oriented.
 
And second, I'd agree that if you claim back a part of the tax, this is basically a subsidy, but in my opinion this just shows how this system leads to wealth distribution effects, that are basically favouring the higher incomes and thus are contrary to the self-proclaimed goal of the government.

This government gets criticized nonstop for providing benefits and choripanes to the poor in order to buy votes. It would be the first time I've heard someone criticize the government for favoring those with "higher incomes" -- the 15% of the population who traveled abroad last year and a few members of this forum. :)
 
Nonetheless, if you have dollar income and you are a permanent resident, it makes sense [or it used to] to buy the tickets in ARS.)

Not necessarily. From time to time I get sponsored ads from Alitalia showing their R/T price from Buenos Aires to Rome, and it is always higher (even considering the blue rate) than buying the tickets in € with an Italian credit card.

Anyway, as everybody pointed out, there are really many variables in place: popularity of the route, time of the year, blue rate, country of origin, country of departure, airlines, etc.
This is just my personal experience from some research I made over the past year. I haven't researched the issue recently so I have no updated data.
 
Looks like the price is pretty fair to me at 15.70sh...

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United from Houston for the same itinerary...looks comparable, even at the official rate.

 
This government gets criticized nonstop for providing benefits and choripanes to the poor in order to buy votes. It would be the first time I've heard someone criticize the government for favoring those with "higher incomes" -- the 15% of the population who traveled abroad last year and a few members of this forum. :)
The implication being that the government is doing us all a favour? Intentionally? Because they just love the upwardly mobile middle classes?
More like them being stuck between a rock and a hard place.
 
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