Government Deregulates Operational Airport Services Market

Through Decree 599/2024, published in the Official Gazette on July 10, 2024, the Executive Branch enacted a new Regulation of Access to the Air Commercial Markets, to streamline the system of access to the air commercial markets and provide it with greater legal certainty, guaranteeing free competition (see our comments on “Government Deepens Changes in National Aeronautical Policy”).

Specifically, Chapter IV of the Regulation establishes the procedure for granting authorizations to provide operational and general ramp airport services to people or companies with legal domicile in Argentina. Meanwhile, Chapter V regulates air commercial authorizations for foreign companies. The Regulation also specifies that such authorization procedure would also be ruled by special regulations issued for that purpose (article 18 of the Regulation).

Accordingly, on November 8, 2024, the Secretariat of Transportation under the Ministry of Economy issued Resolution 49/2024, approving the Process for granting air commercial authorizations for operational and general ramp airport services (the Annex).

Resolution 49 points out the need to deregulate tariffs that had been established by the Federal Government, so that the air transport market can freely determine its prices in fair competition. Thus, the Resolution orders to allow operators of airport services to freely negotiate their permits (article 5) and instructs the National Civil Aviation Administration (ANAC) to repeal any resolution or administrative act that establishes fixed tariffs for these services (article 8). This does not include services provided by a single operator under a concession or exclusivity contract, which will be regulated by the competent authority (article 9).

Regarding the authorizations to provide these services, the Annex establishes that the Undersecretariat of Air Transportation, under the Secretariat of Transportation, will grant them after applicants submit a digital/electronic application. This declaration must include, among other items, a description of the operating equipment with which the services will be provided, a letter of intent or a commitment regarding the insurance to be contracted, and a declaration of commitment for the safe and proper transportation of passengers with reduced mobility.

The new regulation also stipulates the authorization will be automatic in case of silence from the competent authority (article 2 of the Annex). It also provides that authorizations will be valid for 15 years from their issuance and will be automatically renewed if the operational safety standards are met (article 2 of the Resolution).

In addition to this authorization, once the technical regulations determined under Resolution 326/2024 have been complied with, ANAC will promptly issue an Airport Services Operator Digital Certificate. For such purpose, ANAC could appoint a specifical delegated authority (article 6 of the Resolution).

Finally, the Resolution also establishes that, if a provider fails to provide operational and general ramp airport services, law enforcement may provide such services on a temporary and exceptional basis upon instruction from the Ministry of Security (article 10 of the Resolution), pursuant to the procedure determined in Resolution 1199/2024 of the Ministry of Security.