By Eva Richardson – The Logistic News, March 20, 2025
In a landmark shift for Argentina’s aviation sector, the government has announced the full privatisation of Intercargo, the state-owned ground handling company, following concerns over its financial viability and operational efficiency. The decision marks a major step toward deregulating Argentina’s commercial aviation industry, with expectations of increased competition and improved service standards at the nation’s airports.
A Struggling State-Owned Entity
Intercargo, founded in 1990 and headquartered at Ezeiza International Airport (EZE), provides cargo and passenger ground services across 21 airports in Argentina. However, the company has faced mounting financial difficulties in recent years. A decree published in the Official Gazette of the Argentine Republic on March 17, 2025 (Decree 198/2025) formally declared that Intercargo is in a state of economic emergency, authorizing 100% privatisation of the company.
Catalyst for Privatisation: Strikes and Financial Struggles
The decision to privatise Intercargo follows a wave of operational disruptions, most notably a strike in November 2024 at Jorge Newbery Airport (AEP) and Buenos Aires’ Ezeiza International Airport (EZE). The unannounced walkout saw ground handling staff cease all loading, unloading, and ramp operations, leading to over 150 flight cancellations and widespread delays.
In addition to operational challenges, Intercargo has relied on substantial government assistance. Between 2020 and 2023, the company received $6.7 billion in financial support to maintain compliance with quality and safety standards, according to the government decree. The report emphasized that continuing state ownership was unsustainable given the company’s reliance on public funds.
A Push for Deregulation and Market Competition
The Argentine government has framed the move as part of broader efforts to deregulate the commercial aviation sector, aiming to attract new service providers and enhance competition. Despite past deregulation attempts, only a small number of commercial airlines currently provide their own ramp services or outsource them within Argentina.
The decree states that privatising Intercargo is essential to modernising airport logistics, improving efficiency, and reducing costs for both airlines and passengers. The privatisation is also expected to bolster Argentina’s aviation sector, positioning it as a key driver of economic growth.
The Road Ahead: What Comes Next?
With privatisation now officially in motion, the next steps will involve structuring the sale process, determining potential buyers, and ensuring a smooth transition to private ownership. Industry analysts anticipate that international ground handling firms may express interest in acquiring Intercargo, bringing global expertise and investment to Argentina’s aviation infrastructure.
While the privatisation move has drawn mixed reactions—supporters cite efficiency gains and lower costs, while critics warn of potential job losses and service disruptions—the shift undeniably marks a new era for Argentina’s aviation sector. The coming months will be crucial in shaping the future of airport ground services in the country.
