Guatemala Airport
President Arevalo recently announced that the La Aurora International Airport (AILA) will undergo renovations through a private public partnership (PPP). The Airport currently lacks adequate infrastructure and equipment due to lack of prioritization by pervious governments and concerns with corruption.
The announcement was made during the first infrastructure congress in Guatemala held in June 2024, where President Arevalo urged the public and private sector to work together to recover La Aurora.
With the announced PPP, the private sector can contribute technology, capital and expertise for the development of urgent infrastructure. The PPP model is commonly used in countries with a lack of budget and difficulties in developing or upgrading important infrastructure projects.
According to Arevalo and regional experts, La Aurora should be the most important airport in the region, as Guatemala has the biggest economy and population in the region. Unfortunately, due to past issues with corruption, La Aurora has been unable to upgrade or change the air conditioning, elevators, electric stairs, baggage carousel, X-ray equipment, CCTV, runways and other urgent needs.
In 2023, La Aurora reported a total of 4,733,000 passengers and in the first five months of 2024, 1,997,000 according to the Guatemalan Civil Aviation Directorate.
The lack of adequate airport infrastructure results in higher costs, availability shortages and high taxes and fees; therefore, airlines decide to look for markets where they can achieve better profitability. Insurance and safety & security services also cost more in a poorly equipped airport.
President Arevalo has tasked the Ministry of Infrastructure with continuing to work on fixing the current problems to get a better airport category ranking with the FAA. It is expected that the PPP could take up to two years to develop the internal regulation and approvals for the modernization, operation and administration takeover of the airport.
According to AILA, they have planned several phases and timeframes for the modernization of the airport. The first consists of correcting the administrative disorder that currently exists in the General Directorate of Civil Aeronautics (DGAC) and in the AILA and the execution of the pending works that began in the last decade but were not properly addressed.
Government officials have also stated that legal reform is required to permit a PPP to administer the airport and invest in expanding, fixing and updating the Airport. The first phase is expected to begin by the end of the year 2024.
For more information, contact the U.S. Commercial Service Office in Guatemala City at antonio.prieto@trade.gov