Argentina's interior bus companies warn of service cuts amid severe crisis

Bus operators in Argentina's interior are sounding the alarm over a "severe crisis" threatening urban and suburban transport services. Companies warn they may have to reduce operations or suspend them entirely, especially with upcoming bonus payments. The sector has already seen between 9,000 and 11,000 jobs disappear since the start of 2024.

The Federation of Passenger Transport (Fatap) attributes the dire situation to a combination of escalating costs, including fuel, salaries, and supplies, and stagnant, outdated fares. This financial strain has hampered fleet renewal and is now impacting daily operations. Compounding the problem is the "lack of payment of funds and compensation" from national, provincial, and municipal governments, pushing the sector to a "limit."

The crisis intensified in February 2024 when the national government eliminated the Transport Fund, a move that shifted the responsibility for financial assistance to provincial and local authorities. While the national government continues to subsidize passengers through the Sube system and provide compensation in the Buenos Aires Metropolitan Area, operators in the interior feel left behind.

Fatap highlights that the paralysis in fleet renewal and the extended use of older vehicles have led to a decline in service quality. "Today, it's not enough to cover operating costs in the sector," they stated. The union representing drivers, UTA, is demanding salary negotiations to address the rising cost of living, with current monthly wages for drivers in the metropolitan area nearing $2 million Argentine pesos with additions.

Some companies are reportedly unable to meet the upcoming bonus payments, while others can only manage partial payments, further increasing labor tensions. "The idea is not to harm users, but we have reached a limit, and we need the problem to be addressed comprehensively and urgently," operators conveyed.

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