2024-01-01 14:37:00
They still have more doubts than certainties and very little confirmed official information. But in the Argentine Aircraft Factory (FAdeA) that works in Córdoba They are waiting for projects that seek for the State to withdraw from the productive sector and undertake a process of privatization of public companies.
CORDOBA PROFILE He spoke with the president of FAdeA, Mirta Iriondo, who began her administration at the beginning of 2020 under the mandate of Alberto Fernández. She affirms that they managed to lower the contributions that the State makes for the company to function, that they increased productivity and that they have work and several contracts and commercial joint ventures on the horizon. And although she believes that privatizing FAdeA would be a mistake Due to its status as a strategic company, it points out that the main problem they have today is the lack of possibility of accessing the free exchange market to pay dollars to foreign suppliers and continue manufacturing.
Omnibus law: the 41 public companies that Milei intends to privatize
—What is FAdeA doing today and how is the factory?
—Luckily with a lot of work, with a good rhythm. We have a work agreement with Etihad Airways and we are working on a memorandum of understanding with the service provider company Gal Ammroc, also from the Emirates. The medium-term objective is to sign a joint venture to work on projects. That is very interesting. In parallel, we increased orders to make subassemblies and parts for Embraer, we are having more orders for 2025, 2026 and 2027. We make six subassemblies, such as the cargo door, tail cones, flaps, etc.
And we are working a lot for the main client we have, which is the Air Force, clearly. We are delivering a Hercules and a modernization of a Pampa. We have a contract for 6 new and 3 modernized Pampas for the Air Force, we have already delivered 2 new ones and in March we will deliver the third. We are trying to have new contracts with other companies or other air forces. There are complicated regulations that sometimes make us lose clients. We are also going to work with maintenance tasks for other airlines such as Avianca and Sky Airlines.
—How are you going to close the year in billing?
—In 2023 we will bill regarding $16 billion. 85% of the jobs are for the Argentine Air Force, but we continue working to expand the customer horizon. There is an intention to place the IA100 prototype in Uruguay and Paraguay. The problem we have is that we cannot enter the free exchange market to pay suppliers. One understands the circumstances, but we do not have access to the dollar and our projects are going to start to stop. We have to deliver in a timely manner and we cannot import. Then Embraer gave us an ultimatum.
—Isn’t that import problem starting to clear up now?
-Thanks me. Well, as a propagator it is very good to say that we no longer have SIRA, but now we have to ask permission from the Economy and it is worse. And we have a lot of SIRA that we were not approved for and it is debt prior to December 12. Now our supplier has to buy a bond for 2027. He sends us running.
So, next year there will not be a Pucará because IAI, Israel’s state defense company, does not produce anything unless you pay it for everything. They already told us. They have to send us parts for the engine of the Pucará, for the wing, etc. If we don’t send them the money they won’t start producing. And now we are with this and it is so archaic to talk regarding companies subject to privatization, it is such a non-serious issue, so from the ’90s. We are a public limited company with a partner that is the national State. What the State has to do is ask for permission to sell 20% or 30% to so-and-so. That’s all. Less propaganda and more facts. That has to be done, unless you want to destroy the company, use the fields that exist and do real estate ventures. All can be. If you want to do aeronautical activity you have to know, we are doing joint projects with companies from other countries. If the people of the Emirates want to buy shares, I don’t see it as a bad thing, but in the world there are States that participate to control defense companies, such as Airbus.
The SRT, Fadea, Dioxitek and Fabricaciones Militares, the Córdoba companies that Milei wants to privatize
—So, is it a mistake that the State decides to withdraw from Fadea?
-Clear. But I hear harsher things, like if it is not sustainable and profitable it should be closed. Who might think that you are going to close FadeA?
—To the current management, for example.
—Yes, but they won’t be able to do it. The only way to do it is to destroy it. Let’s look at the case of YPF, they want to sell the part of the national State when the projects it has in the coming years will give us high dividends and develop the industry.
—It seems that “the privatization lightning bolt” is in principle designed to fall on companies like Aerolíneas that make a loss or on YPF that may have a lot of potential. There doesn’t seem to be a distinction, but aside from this, how is FadeA doing with its numbers? How much does the State contribute to you?
—Well, let’s see the evolution of those numbers. At today’s constant prices, in 2016 Fadea received $11 billion in State transfers, in 2017 $12 billion, in 2019 it dropped to $6,000 million, when we started it dropped to $4,000 million and in August 2023 we are at $1,600 million. Reducing these contributions was one of the objectives we set and improving productivity. It must also be said that the mechanism is not good, because the shareholder does not contribute to capitalize the company if an investment has to be made and on the balance sheets they appear as subsidies-style contributions. This last quarter productivity has decreased because we ran out of material to work with.
Power struggle for national positions that open in Córdoba
—Many things are going to be frozen, what do you know regarding the contracts and the next games?
—They can do what they want, but who is going to support the Hercules to go to Antarctica? Let them explain that to me. Who is going to maintain the Pampas for the Air Force? Or they’re going to have to take the plane out to Canada for maintenance. They will spend fewer dollars if they do it in FAdeA, if the problem is dollars. We still don’t know anything, because we don’t have a Budget, we depend on a Fund managed by the Ministry of Defense. We don’t know what they are going to do going forward, the only thing I know is that there are brigades with Pampa, and if you want the Air Force to fly you have to maintain and fix the Pampas. If you don’t send the Air Force to your house.
—Is the goal for everything to be closed and privatized?
—I don’t know, I see that it is more of an ideological position. Liberal ideology has not worked, I see no rationality. I can understand that they want to sell to a company, but that it is part of a rational plan.
—How many people do you have in FAdeA today?
—950 workers
—With three guilds, right? What do the guilds say?
—What do I know, all they do is scare people. People are not going to be left on the streets because there is work. The problem is not that someone comes and buys shares, the problem is that you want to tear it down because you are not interested, and if you are interested, let me access the free exchange market, because otherwise you will suffocate the company. The problem is not whether it is state-owned or not, in the US Lockheed Martines is private, but the State goes and hires it because not everyone can have a company like that. This is how it is. In the world there are very few aircraft factories, the free market in aeronautics does not work. Are you willing to support the planes of the Armed Forces? Flying is expensive. For the State to sell FAdeA or shares may be more expensive. The important thing is that there are long-term projects. And FAdeA has it. But if you don’t want to maintain the planes, don’t do it, or don’t have the Armed Forces, that can also be the case. Either you support the Armed Forces and FAdeA fulfills its function or it does not. The problem is the national State, not FAdeA. We are going to deliver the company up and running, with projects and with a good cash flow. I don’t know if they are going to lower contracts, but if you want to ruin the company and then privatize it, it seems like the most unintelligent thing to me. It’s a dynamic from the ’90s. There are times when I say poor FAdeA.
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