The Argentine government has commenced the process of dismantling regulations governing the commercial aviation sector. The national executive has approved new norms under Decree 599/2024, which establish open access to the air travel market by repealing existing rules and amending the Aeronautical Code.
The decree impacts permits required for airlines to operate within Argentina, encompassing both domestic and international air passenger and cargo transport, for scheduled or non-scheduled services, as well as airport operations and ramp services.
This initiative aims to introduce greater competition among ramp operators, allowing airlines the freedom to choose their service providers. Currently, Intercargo holds exclusivity, despite airlines like Flybondi and American Airlines providing their own services.
Airlines will now have the liberty to engage in contracts of their choice, a freedom previously restricted, requiring only approval from the National Civil Aviation Administration (ANAC).
The decree stipulates that new operators can enter the market swiftly through a streamlined administrative process, fostering competitive dynamics among companies. It eliminates regulations on air fares and permits companies to determine service frequencies, provided they adhere to initial safety standards outlined in their business plans. Transparent allocation of airport capacity is mandated, with state intervention focused solely on preserving these principles efficiently.
The decree also introduces incentives for the establishment of new commercial air routes and carriers, alongside metrics for operational efficiency, regularity, punctuality, and planning.
Signed by President Javier Milei, Chief of Staff Guillermo Francos, and Economy Minister Luis Caputo, the decree underscores the government's commitment to ensuring a free market and fair competition while maintaining regulatory oversight to prevent monopolistic practices.
