The Argentine Government has extended the airport management concession contract held by Aeropuertos Argentina 2000 (AA2000) by 10 years, until 2038. The current contract was due to expire in 2028, and the extension follows a recommendation by ORSNA, the Government control-led airports regulator.
AA2000 has agreed to invest a minimum of US$2.5bn during the remaining concession period, of which US$1.4bn will be invested in the next 7 years.
The revised contract was signed on November 30 in the Casa Rosada with President Alberto Fernandez and Transport Minister Mario Meoni representing the government, Carlos Lugones Aignasse, Fernando Muriel and Pilar Becerra present for ORSNA and Eduardo Eurnekian, Martin Eurnekian and Daniel Ketchibachian on behalf of AA2000.
With air traffic falling by more than 98% during the pandemic, ORSNA and AA2000 began discussions in July this year to ensure the sustainability of the Argentine airport network as ACI and ICAO are forecasting that pre-pandemic traffic levels will not return until late 2024 or early 2025.
The contract extension will allow AA2000 to return to several expansion projects that were interrupted by the Argentine lockdown.
Martin Eurnekian, Chairman of AA2000 said, “With the back-ground of the worst year for our airport concession, we are reaffirming our commitment to the country by developing industry, tourism and the communities where we operate. We will be putting a major infrastructure investment program into action and this will generate 15,000 jobs.”
The day following the announcement shares in Corporacion America, parent company jumped to $US5.59 in Wall Street, up from the previous close of US$3.12. The shares have now settled between US$4.50 and US$4.80.