IATA has carried out its threat to take legal action against AA2000 and the Argentinian government.
The dispute, over what it claims is an unfair renegotiation of the contract between Argentina and the country's airport operator Aeropuertos Argentina 2000 (AA2000), involves Buenos Aires airport and is being supported by ALTA, the Latin American Airline Association.
The move is the third time IATA has taken legal action against what it says are flawed airport deals. In June it took the French government to court over its fee hikes at Paris airports, and in May it filed a case against the Dutch government's increases at Schiphol Airport.
"In certain cases it is quite difficult not to follow this kind of approach," says IATA director general Giovanni Bisignani, adding it is likely the association will have to resort to further legal battles in 2007.
The issue in Argentina dates back to 1998 when the government privatised the country's airports creating AA2000. ALTA says the new deal struck between the government and AA2000 will keep airport fees at their current high levels, guarantee a future rate of return of the airport group of 16% and open the door to new extra charges, says its executive director Alex de Gunten.
ALTA and IATA estimate carriers have overpaid some $230 million in fees at Buenos Aires since December 2001. As part of a renegotiated agreement they were asking for a 30% rates and fees discount to compensate, says de Gunten.
The airlines were not consulted about the proposed new contract. "It was bad already," says de Gunten, "but with the new arrangement we will be paying even more."
ALTA is calling for a new regulatory body to be created in Argentina to avoid the "abuses" that have occurred since 1998. "There is a cosy relationship between the airport and government," says Bisignani. "That is going to turn a failed privatisation into a disaster."
Source: Airline Business
