“This is a transformational period for aviation in Argentina,” says Peter Cerda, IATA’s Regional Vice President for the Americas, referring to recently introduced government policies setting the framework for opening and deregulating the aviation market in Argentina.
The various changes were explored recently at IATA’s and ACI-LAC’s Aviation Day in Argentina. Essentially, the new regulations will boost the sector, and the connectivity and competitiveness necessary for the country’s development. They will create a level playing field for all airlines, eliminate the ground handling monopoly, and open the market both domestically and internationally.
Eight Open Skies agreements have already been signed and several more are in the pipeline before the end of 2024 with countries from the region, the Middle East, and Asia.
“These decrees have all been approved in the first seven months of the new administration,” Cerda points out. “This is critical as it provides the industry and the government sufficient time to work collaboratively to build a strong aviation structure in Argentina. However, for this to work, the unions will need to adapt to today’s aviation needs and requirements. This will alter the DNA of aviation in Argentina for the better.”
ATC development
Generally, airports in Argentina are in good shape. There is a new terminal at the main Buenos Aires gateway, Ezeiza International Airport, featuring the latest technologies. Capable of handling some 30 million passengers per annum, the facility also features cutting-edge sustainability initiatives.
Investment in other national airports is also taking place, which should be sufficient to handle anticipated air travel growth in the short to mid-term.
However, the greatest need is the transformation of airspace around Buenos Aires, which requires modernization. Air traffic control also suffers from an unbalanced charges system. There is a significant difference between domestic and international charges, with the latter going up 22% in the last review.
Cerda says IATA is supportive of a fairer system that will bring fees for the two types of traffic closer together, pointing out that there is no notable difference in the service being offered.
Despite the charges difference, international traffic has responded to the work being done in the country and has grown in 2024. Although it is still behind pre-COVID levels, the accelerating pace of development is a strong signal that Argentina is an attractive destination. International airlines are returning to the country.
“The government has taken forceful but rational decisions,” suggests Cerda. The Argentine airlines can’t fly everywhere and the move toward Open Skies will create more connectivity and a stronger and more competitive market from which all will benefit, primarily the end customer.”
Issues in Latin America
Cerda says Argentina is setting the right example for other Latin American nations to follow. Aviation in the region still has several unique challenges to overcome to fully unlock the social and economic benefits of air transport.
In Brazil, litigation is the main concern. Excessive moral damage claims without evidence have led to record-breaking legal action. IATA is working closely with the relevant authorities to educate them on global best practices in this area and so save all parties from unnecessary cost and bureaucracy.
In Peru, maintaining the country’s International Aviation Safety Assessment (IASA) Category 1 status is the highest priority. Without this, the country’s flights to the United States will be restricted and air connectivity would be negatively affected. “Mexico made this mistake some years back, and it was extremely impactful for both sides of the border,” warns Cerda.
Work on infrastructure at Lima Airport will be critical. A new runway and tower that were operationally live one year ago are not yet fully functional and the concern is the new terminal will be equally slow in realizing its full potential.
Meanwhile, there are no sustainable aviation fuel (SAF) production plants in the region despite its vast potential for feedstock supply. A refinery is expected to open in Paraguay in 2026, but it is already known that much of its SAF supply will go overseas.
“It is absolutely critical that governments implement the right policies because this is an area where Latin America aviation can’t afford to be left behind,” says Cerda. “They must create frameworks that incentivize investment in SAF.”
Cerda says the region’s energy, finance, and transportation ministers must agree on an aligned plan that will meet expectations and global standards.
“Aviation is essential to the region’s development,” he concludes. “There are no suitable modes of ground transportation that are equivalent and geographic challenges are prevalent throughout the entire continent. Aviation is the safest, most reliable, and efficient mode of transportation for people and cargo.
“Argentina is setting the right example and, as aviation’s benefits become clear in that country, we must hope that other Latin American nations take note.”
Peter Cerda’s remarks and presentation at the Aviation Day in Argentina.
