Privatization Plans for Argentina’s Airport Services and Key State Companies

Intercargo Overview

Intercargo provides ramp and passenger transport services at 21 major airports in the country. Its responsibilities include towing airplanes, pre-flight and landing signaling, transporting passengers to and from aircraft, baggage handling, supplying electricity, potable water, waste disposal, and cleaning.

Privatization Plans

Authorities are assessing the best model to privatize these services. They plan to hold an international bidding process, with a potential option to sell the company altogether. However, the preferred approach appears to be opening the business by point of interest.

As of the first half of 2024, Intercargo employed 1,580 people and reported a financial surplus of $1.245 billion last year. By June of this year, this surplus grew to $9.636 billion, according to Chequeado.com.

Aerolíneas Argentinas Situation

The privatization of Aerolíneas Argentinas is notably complex. Recently, unions agreed to cut worker benefits. Critics say this merely postpones the problem without addressing core issues. Unions continue to oppose privatization, criticizing Minister Federico Sturzenegger and promoting national sovereignty in support of Aerolíneas.

President Javier Milei seeks to privatize the airline. However, uncertainty about its future has affected sales. Reports indicate that ticket sales from Uruguay have dropped significantly due to ongoing conflicts within the company.

AYSA Update

Agua y Saneamientos Argentinos (AYSA) is another company that may soon be transferred to private ownership. Official sources report that there is interest in managing its operations. This situation is politically sensitive as AYSA operates in areas with strong Kirchnerist influence. Nonetheless, President Milei aims to resolve AYSA’s issues, stating it is unfair for all Argentinians to subsidize consumers in Greater Buenos Aires.

Closure of the Ex-Ciccone Plant

In another privatization effort, the government announced the closure of the ex-Ciccone printing plant in Don Torcuato, responsible for printing currency. This move will save the state $5.04 billion annually and will result in the dismissal of 270 employees. The government is providing assistance to various agencies that receive services from Casa de Moneda to find new suppliers.

The Central Bank has also terminated contracts with Casa de Moneda for printing bills. The latest banknotes, valued at $10,000 and $20,000, were imported, which the government claims resulted in significant savings for the monetary authority.