Privatization can mean a death blow to most airports, say workers

24/11/2009 13h35

The possibility of privatization of airports was everely criticized by the Secretary-General of National Union of Airport Workers (Sina), Celio Barros de Lima, at a public hearing of the Committee on the Amazon, National Integration and Regional Development, on Tuesday (17th), convened to discuss the Brazilian Airport Privatization Program (PND) .

"What they want, in fact, is forcing a privatization process on the only area that is profitable nowadays among state companies, which is Infraero. The concession model, as we understand it, is nothing more than privatization" , said Celio Lima.

Celio Lima pointed out that among 67 airports where Infraero – the Brazilian Airport Infrastructure Company – operates, only six are making a profit. He said the other airports are only viable on account of the cross-subsidy system employed by the company. He argues that the loss-making airports will become unviable due to lack of interest from private enterprise.

Ministry of Defense
In the opinion of the director of the Department of Civil Aviation Policy
of the Ministry of Defense, Fernando Antônio Ribeiro Soares, the concession model will not affect the loss-making units, because the concession will be made according to the amount contributed by the concessionaires.

The director explained that the company that wins the concession for an airport will have to pay rent for that unit. "Our idea is that resources from these airports should be used in public-private partnerships to finance airports that have deficit but are important for national integration and regional development” .

The announcement of the government's decision to transfer airports to the private sector was made in September 2008 by the Defense Minister, Nelson Jobim. The first two units to be privatized would be the Tom Jobim International Airport (Galeão) in Rio de Janeiro and Viracopos Airport in Campinas (SP). Currently, all airports are managed by Infraero.

Parliamentary Group
One of the proposers of the request for the hearing, Deputy Perpétua Almeida (PCdoB-AC), who is against privatization, announced that a parliamentary group will soon be formed to defend Infraero as a public institution. According to Perpétua Almeida, the company is profitable and should remain under state control. She states:"Only a public company would be able to maintain a balanced national airport system, because it has the necessary political, economic and social responsibility”

In Deputy Almeida’s view, the solution to the problems of Infraero and of the country's airports does not depend on privatization, but on the preparation, coordinated by the Government, of a National Civil Aviation Policy and an National Air Transport Plan. "These policies would provide the sector with planning tools and a long-term view."

Reporting – Idhelene Macedo / The Chamber´s Radio Station
Edition - Regina Céli Assumpção/RX
Translation – Adriana Resende