Aerolineas Argentinas group relaunches and refines it’s 2009 Master Plan to save Fuel

AR and AU launched its Master Plan to save Fuel in 2009 which to date has had significant results. In the face of the current situation in the price increase of crude oil, the Company has decided to relaunch the Plan with the purpose of accelerating its implementation and taking into account the new technologies available in the latest aircraft acquired by our Group as well as the investment in new equipment to monitor flight movements.

This plan, similar to the one applied in all commercial aeronautical industries, has in mind primarily the operational safety of flights. This means that the saving in fuel costs does not compromise in any form or way the safty and security to the operation of flights. Currently the fuel costs represent 40% of the total operational cost to the Company increasing to 464 million dollars in 2010.

The average price of fuel during the period of 2009 was 60 dollars a barrel, in 2010 it increased to 80 dollars and in 2011 it has surpassed 110 dollars a barrel which represents an increase of more than 30% per year. This means that in the short term all savings that can be made are of significant importance to the Plan in order to auto finance itself.

Fundamentally the plan is based in incorporating 20 new GPUs that allow the aircraft to be energized while maintenance, refueling and conditioning of the aircraft are taking place on the ground, making a significant saving in Jet A-1 fuel.

In the same way, the investments made by the Government and private sector at each airport allowing better options for alternate airports in case of meteorological or operational requirements.

Finally, it is important to point out, that in the quest to look for reduction in the cost, the passenger is also involved as checked and carry on baggage baggage has to be taken into account, when their documents are issued.

In this way, the Company not only makes cost reductions but also contributes to lowering the emission of CO2 helping in the care of our environment.

Buenos Aires, May 18th, 2011.