A fight for Argentine skies - Jul. 9, 1997

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A fight for Argentine skies

July 9, 1997: 9:59 a.m. ET

American, Continental battle it out for right to bid on Aerolineas Argentinas

NEW YORK (CNNfn) - AMR Corp.'s American Airlines and Continental Airlines Inc. are reportedly battling for the right to own part of the second-largest airline in South America, Aerolineas Argentinas.
     Both U.S. carriers are hoping to gain a foothold on the fast-growing Latin American market with an investment in Aerolineas, which controls an estimated 37 percent of the South American air traffic, the Washington Post reported on Wednesday.
     Continental Air is seeking to buy 45 percent of Aerolineas with a partner, Newbridge Latin America, the Post reported, quoting sources close to the negotiations. American Airlines is seeking to acquire 10 percent with investors who would own an additional 35 percent.
     The offers are valued at nearly $300 million. The winning bidder will likely need to commit additional capital for equipment upgrades, including new aircraft.
     Aerolineas' board, which is controlled by Iberia Airlines of Spain, is expected to choose a winning bidder within the next two weeks.

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