ongoing crisis FADEA, aircraft factory in Cordobathe future of the state-owned enterprise became a mystery after details of its production status and financial situation were revealed. At the same time as confirming that At the end of this month, the established rotating staff closure schedule will expire It has been revealed that the company is facing an even more serious production stoppage due to an internal communication that said there was a prior agreement with the labor sector of the Cordoba government, which would increase the likelihood of 700 job losses. and Air Force contract remains unsigned It will bring economic oxygen. meanwhile, Employees only work at company facilities three days a week And FADEA has millions of dollars in debt with suppliers.
According to data from sources close to the company today, The Cordoba Aircraft Factory operates solely with funds from the Ministry of Economy. Donate monthly. As noted regarding FADEA, this funding could be interrupted at any time given the company’s dependence on the Defense Portfolio, which has also recently been reluctant to extend financial support to state-owned enterprises.
In addition to this, unrest within FADEA has intensified in recent days after learning of a letter signed by the aircraft factory’s current vice president, Emilio Magnagi, stating that the company is effectively on the brink of closure.
Aircraft factories and potentially permanent paralysis
In a leaked letter earlier this month, Magnagi noted that the company is in a state of “.unprecedented structural crisisIt points out that unless La Libertad Avanza (LLA) intervenes to financially rescue the state-owned enterprise, FADEA and its continuation “could be severely compromised both financially and productively.”
Sources in Cordoba said the letter in question was addressed to the Ministry of Defense’s Investment and Production Secretariat. The text emphasizes that facilities in the Mediterranean region have undergone ‘.terminal crisis“If there is no new contract with the Air Force.
“The amendment replaced the previous intergovernmental agreement with a direct agreement, but, as the text makes clear, it was not implemented until 2025. As a result, no formal contract has been concluded and factories are operating under unstable ‘cost recognition’, a mechanism that does not cover production costs,” local media outlets such as La Voze point out.
Magnagi said FADEA has about $3.8 billion in debt with the Air Force and about $18 million in unfulfilled commitments with domestic and international suppliers.
In the letter he said of the aircraft factory: The company has a “negative net worth” and suffers from “virtually no operating liquidity.”
Finally, it is noted that due to the lack of a contract with the Air Force, pilot training at FADEA is currently suspended, as well as production and maintenance work on the IA-63 Pampa and C-130 Hercules units.
FADEA: Jobs at risk as moratorium expires
At the end of this month, the schedule for rotating staff suspensions set out in an agreement with the Córdoba government’s labor sector expires, raising the possibility that 700 jobs will be lost. The measures in question were drawn up based on the crisis prevention plan (PPC) that governs the company.
In parallel with these tasks, A further 800 jobs are at risk of being lost among small and medium-sized business members supplying FADEA. In the short term, this is due to reduced activity within aircraft factories.
The serious moment that the state-owned company is experiencing was recently exposed by the Argentine Chamber of Aeronautics and Astronautics (CArAE) and the Chamber of Metallurgical Components Industry (CIMCC). Both organizations aim to provide materials and components to the FADEA workshop.
According to the entity, Cordoba aircraft factory is currently operating at 30% of its operating capacity We owe more than $20 million to our small business suppliers. CArAE and CIMCC said in a statement that the FADEA leadership has so far ignored the complaints and claims of the companies that make up both organizations.
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