In 2019 a number of airlines challenged fines issued by the Immigration Authority (DNM) – in particular, fines relating to an entrance tax imposed on US, Canadian and Australian citizens. A number of recent court decisions revoked such fines and may lead the way towards a new conceptual approach by the Argentine courts regarding the fines that the DNM regularly, and often incorrectly, imposes on airlines.
The COVID-19 pandemic has resulted in the introduction of several new resolutions in Argentina. For example, on 12 March 2020, in a general agreement of ministers, the president decreed a state of public emergency for one year and on 19 March 2020 a number of social, preventive and mandatory isolation measures were established. This article examines the effects of COVID-19 on the Argentine aviation industry.
Federal Civil and Commercial Court 2 recently dismissed a damages claim against Aeromexico brought by two passengers for the rescheduling of their flights. The court found that the decision to reschedule the relevant flights had been approved by the Argentine Aviation Authority and that the plaintiffs had been informed of the rescheduled flights in a correct, clear and detailed way.
On 23 December 2019 a 30% tax on services hired abroad by travel agencies located in Argentina was introduced. The fact that the new tax applied the day after its introduction created chaos for air companies as non-compliance can trigger fines with interest. The Argentine Tax Authority recently introduced a resolution to address the lack of clarity surrounding the collection of the new tax, but it will take time for carriers to implement the measures required to comply with the new regulations.
The Immigration Authority (DNM) repeatedly imposes substantial fines on carriers. Despite the fact that in many cases these fines have been wrongly imposed, airlines must pay any outstanding fines in order to file a judicial complaint against the DNM, so the fines are widely viewed as another cost of operating in Argentina. That said, a number of airlines have recently challenged the DNM's fines and the courts have given a clear sign that, even with the above difficulties, it is worth challenging this legal loophole.