SANTIAGO May 17 LATAM Airlines Group SA
said its Argentina unit was halting all of its flights
in the country until 1330 GMT on Saturday after a state company
unilaterally decided to stop providing services to the airline.
Intercargo provides Latin America's biggest carrier with
ramps at Argentine airports, loads suitcases and manages
passenger buses to terminals, LATAM said in a statement late on
In a statement, published by Argentine state news agency
Telam, Intercargo said LATAM "doesn't want to pay more than what
was agreed initially" and said it is owed a debt of nearly 40
million Argentine pesos ($7.6 million).
Intercargo says the tariffs in the current contract with
LATAM should be raised to comply with new government rules.
A source in Argentina's airlines industry familiar with the
conflict said Intercargo was demanding the equivalent of $18
million a year to resume the provision of services.
But a spokesman for LATAM's Argentina unit told local media
that Intercargo was flouting two separate judicial decisions
ordering it to get back to work.
LATAM is doing everything it can to resolve the issue, the
Santiago-based company said.