The U.S. Justice confirmed the conviction for the expropriation of Aerolíneas Argentinas and Austral ordered by Cristina Kirchner
In 2024, the U.S. Justice recognized the validity of the ruling and ordered the payment of USD 390.9 million. The appeal filed by Argentina also did not succeed, so the liability generated by a decision of Kirchnerism remained firm nearly two decades later.
The nationalization of Aerolíneas Argentinas and Austral driven by Kirchnerism in 2008 has once again left a hefty bill for all Argentinians. The U.S. Justice confirmed that the State must pay USD 390.9 million, plus interest, to the Titan Consortium for the expropriation ordered during the government of Cristina Kirchner.
The District of Columbia Court of Appeals rejected the appeal filed by Argentina and upheld the first-instance ruling. Thus, the claiming fund was authorized to continue with actions aimed at collecting the compensation and attempt to advance on Argentine sovereign assets abroad.
The conflict began when Kirchnerism decided to nationalize Aerolíneas Argentinas and Austral, which at that time were under the control of the Spanish group Marsans. After the expropriation, the former shareholders turned to the International Centre for Settlement of Investment Disputes, the World Bank's arbitration tribunal responsible for resolving disputes between States and foreign investors.
In 2017, the ICSID ruled against Argentina and set compensation close to USD 320 million, plus interest and costs. The State attempted to annul the ruling, but the request was rejected. The rights to the litigation were subsequently transferred to Burford Capital and then to Titan Consortium, which has been seeking to enforce the award in U.S. courts since 2021.
The ruling increases the risk that Titan will attempt to identify Argentine assets that could be seized. However, enforcement will not be automatic: a significant portion of state assets abroad is protected by sovereign immunity laws, so the fund will need to demonstrate that the chosen assets can be reached.
The ruling contrasts with the transformation that Aerolíneas Argentinas underwent during the administration of Javier Milei. After years of relying on Treasury transfers, the company closed 2025 with an operating result positive of USD 112.7 million, almost double that of 2024, and completed a fiscal year for the first time since nationalization without receiving state funds to operate.
The improvement was accompanied by cost reductions, downsizing of the structure, and greater operational efficiency. While the Milei government moves forward with the company's restructuring, Argentinians will have to face a new economic consequence of the expropriations driven by Kirchnerism.
