Argentina’s complicated USD1.4 billion airport development plan
In many countries airport investment schemes, whether by governments or the private sector (or both), have gone on hold.
The Argentinean government has made a surprise announcement that it will invest USD1.4 billion over four years to improve airports. There are numerous such schemes in place now, all of which should be completed in the next two years, and at half the envisaged cost of the new set.
The complications in Argentina are many. Although international tourism was growing prior to the pandemic, air passenger numbers were not. The economy, as is often the case, is in a dreadful mess. The pandemic has stopped the country in its tracks and the government is accused of having no lockdown exit strategy. The government appears set on a protective aviation strategy that will unwind most of the progress that has been achieved over the past five years.
On top of all that, most of the airports are run by a private sector company under concession, and that firm has also taken a beating.
How deep will it have to go into its own pockets? And at the same time, the government believes that there are too many airports in Buenos Aires and that one of them may have to go.
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