Dispute Between U.S. Investment Funds Deepens Argentine Airline Flybondi's Crisis

A bitter dispute between two American investment funds has plunged the Argentine low-cost airline Flybondi into a deepening crisis, leaving the company grounded for ten days. This halt in operations has stranded thousands of passengers and left hundreds of employees without pay or severance.

The conflict pits COC Group against Cartesian Capital Group. COC Group has publicly urged Cartesian to "normalize the company's situation to provide certainty about the continuity of its operations and preserve employees' jobs." Cartesian remains the owner of Flybondi, despite an earlier agreement in June 2025 where COC was set to become the primary shareholder. However, the capital injection never materialized after a due diligence revealed financial irregularities.

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normalize the situation of the company with the objective of giving certainty about the continuity of its operations and preserving the sources of work of the employees

Argentine tourism agencies have ceased offering Flybondi tickets to protect their clients, and the airline's website has gone offline. COC Group announced its intention to pursue legal action against Cartesian in both Argentine and international courts, accusing them of "hidden liabilities, fund diversions, and decisions lacking any commercial logic."

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hidden liabilities, fund diversions, and decisions lacking any commercial logic

Adding to the airline's woes, a court ordered an embargo on Flybondi last Thursday due to non-compliance with numerous tax obligations. COC, owned by Argentine investor Leonardo Scatturice, claims Cartesian is shirking responsibility, leaving creditors and former employees without communication for weeks. COC has already invested $70 million in Flybondi, stating that the absence of the shareholder prevents necessary decisions for financial and operational recovery.

This crisis has severely impacted Flybondi's workforce, with approximately 700 employees affected. Protests have occurred at Buenos Aires airport as former workers demand their due compensation. Flybondi, founded in 2016 and operating since 2018, also faces international scrutiny, with Paraguayan authorities ordering a suspension of ticket sales to and from Argentina due to frequent cancellations.

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As a result of the shareholder's absence, the company is prevented from making the necessary decisions to normalize its financial and operational situation and meet its commitments to the workers