MercoPress. South Atlantic News Agency

Argentina sells two Pampa III jet trainers to Guatemala

The aircraft, which will be used in pilot training and border control of Guatemala, are identical to those currently used by the Argentine Air Force (FAA)

A contract for the sale of two Argentine Pampa III jet trainers to the Guatemalan Air Force has been signed in Buenos Aires. The deal, worth US$ 28 million, was signed on 3 July by the Argentine and Guatemalan defense ministers, Oscar Aguad and General Miguel Ralda respectively, along with Antonio Beltramone, the president of Argentine state aircraft manufacturer FAdeA.

The deal includes technical support and training, Beltramone revealed that the air forces of the two countries “will increase their joint work and the Guatemalan Air Force will send pilots and technicians to the Argentine Air Force for training. For FAdeA this is an historical goal, as it is the first time the Pampa has been exported.”

The operation is part of an agreement signed in Olivos, in the presence of the presidents of Argentina and Guatemala and senior officials of both countries.

The aircraft, which will be used in pilot training and border control of Guatemala, are identical to those currently used by the Argentine Air Force (FAA) and will be delivered before the end of this year.

After the sale of the Pampa III, Aguad said that he was “proud to have been able to meet one of the objectives set by the national government, which was to start optimizing resources of the State so that national companies can begin to be efficient and self-sustaining”.

For his part, the president of FAdeA, Antonio Beltramone, said: “This sale is a historic milestone for our country. FAdeA returns to being an exporter of technology of very high complexity, demonstrating the great capability that we Argentines possess.”

In addition, he said that the reactivation of FAdeA and the management of new businesses “was a very complex process that demanded a great effort”.

“This is just the beginning. We continue working to generate more sales,” added Beltramone, who recalled that it was Defense Minister Aguad who selected him to recover the factory.

In recent years, FAdeA carried out one of the most ambitious restructurings of the group of state-owned companies, which allowed it to reverse the adverse situation it was experiencing in 2015, and which it managed based on three strategic pillars: stabilization, production reactivation and generation of new clients.

After an in-depth process that involved all areas, the company managed to balance its capabilities, increasing its efficiency and productivity rates.

At the same time, through controls and supplier management systems, operating costs were reduced and the accumulated historical debt was considerably reduced, while all the commitments assumed with customers were fulfilled.

Within this framework, the certification and delivery to the Argentine Air Force of three Pampa III aircraft -- after ten years without delivering new aircraft -- stand out, as does in increase of 10% in the use of national components in production.

Regarding the generation of clients, FAdeA achieved an historic record in the volume of new businesses outside the Argentine State: in 2018, 14% of its revenues were from foreign customers, an unprecedented figure for the company, which in 2015 only obtained 2% of income outside the State.

For 2019, a new record is expected, with a 25% turnover to third parties, thanks to the certification of new capacities and the closing of contracts linked to the maintenance of commercial aviation, the production of wind turbines and the export sale of Pampa III and other, unpublished businesses of the company, with a high growth potential.

On July 17, 2018, FAdeA received the approval document for the new version of the Pampa III aircraft, granted by the General Directorate of Joint Military Airworthiness (DIGAMC), thereby certifying the completion of the aircraft certification process.