Airlines Back Milei's Deregulation but Demand More Transparency on Fees

The International Air Transport Association (IATA) has reiterated its support for the deregulation policies implemented by Argentine President Javier Milei's administration in the aviation sector. However, the global airline body has also issued a warning regarding the transparency of certain regulatory decisions, specifically referencing a recent hike in air navigation fees.

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We had meetings with the Argentine Air Navigation Company (EANA) and the National Civil Aviation Administration (ANAC) where they had confirmed that there would be no increase. Two days later, the 15% increase was applied without any prior notice.

Peter Cerdá, IATA's regional vice president for the Americas, stated during a conference in Rio de Janeiro that meetings with Argentina's air navigation authorities (EANA) and civil aviation administration (ANAC) had confirmed no increase in fees was planned. "Two days later, the 15% increase was applied without any prior notice," Cerdá reported. This statement represents one of the most direct criticisms leveled by IATA against an Argentine government measure.

While IATA has consistently backed the liberalization of Argentina's air market, recent months have seen the association express concerns about delays in implementing reforms and decisions perceived to hinder the sector's competitiveness. "Argentina has made progress in opening its market and promoting competition. But, unfortunately, the latest increase in fees has made the country the most expensive airspace in Latin America to operate in," Cerdá explained. He emphasized that while infrastructure has costs, decisions made without prior consultation erode competitiveness, particularly for a country aiming to boost it.

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Argentina has made progress in opening its market and promoting competition. But, unfortunately, the latest increase in fees has made the country the most expensive airspace in Latin America to operate in.

Cerdá also noted that Argentina's air travel market recovery has not yet reached pre-pandemic levels, with routes and frequencies remaining below 2019 figures. The recent tariff increase, following an earlier 18% hike, is a significant concern for airlines operating in the country. "It is a proactive government, but these decisions increase operational costs. Furthermore, competition in ramp services has not yet taken off. We are concerned because of Argentina's enormous potential," he added.

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The infrastructure has a cost, but when these decisions are made without prior consultation, competitiveness is lost, especially in a country that seeks to promote it.

IATA has communicated these concerns directly to high-level Argentine government officials. "I have written to the highest levels of the Government to try to reach a balance where we can all win and there is greater transparency," Cerdá said. The issue of ramp services has been a recurring point of discussion, with IATA previously highlighting deregulation measures but noting slower-than-expected progress in their effective implementation.

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In terms of routes and frequencies, the country is still below the 2019 numbers.