Eduardo Eurnekian
Encyclopedia
Eduardo Eurnekian is an Argentinian businessman.
, in 1932. His family established a textile
manufacturer which prospered with the Argentine economy and became an important supplier to international sporting apparel firm Puma
; but which, like many Argentine textile makers, nearly collapsed after Economy Minister José Alfredo Martínez de Hoz
's round of free trade
and deregulatory policies led to a severe crisis, in 1981.
The Eurnekian family reportedly borrowed heavily from the former Argentine small business lender, BANADE, and in 1988, Eduardo Eurnekian purchased "Cablevisión S.A," then a failing local cable tv station. His investment became increasingly lucrative following Economy Minister Domingo Cavallo
's implementation of the Convertibility Plan
in 1991, which brought financial and price stability to Argentina during the 1990s. Eurnekian in 1994 sold a 51% stake in Cablevision S.A. (by then Argentina's second-largest cable operator), to Tele-Communications Inc.
for US$350 million and in 1997, netted US$320 million by selling most of his remaining shares to local investment giant CEI Citicorp Holdings SA.
Eurnekian also held controlling interest in "América TV", four radio stations and a Buenos Aires financial daily, El Cronista. "Aeropuertos Argentina 2000," a consortium led by Eurnekian won a 30-year concession in 1998 to run 33 of the Argentina
's main airports. He also bought the Howard Johnson's
master franchise in Argentina from Cendant
, and invested in a regional airline company, LAPA
.
, which is Armenia's
largest airport. The company launched the construction of a new terminal
which brought the airport into conformity with international standards. The total cost of the project was more than $50 million.
Eurnekian also unveiled plans to invest millions of dollars into Armenia's
agribusiness sector as he set up a joint venture
with a local firm. Senior executives from Tierras de Armenia, a Yerevan
-based company belonging to Eurnekian, and the Max Group (owned by Harutiun Pambukian, a parliamentarian close to former President
Robert Kocharian
), reported a US$25 million joint venture to develop 60 km2 (24 mi2) of arid land in the southern Armavir
region into fruit orchards and a fruit processing plant.
Eurnekian has built an almost $1 billion media empire since the early 1990s and is now the majority owner of a consortium operating 76 airport
s worldwide, mostly across Argentina
and elsewhere in South America
as well as in Armenia
. He also owns 2,000 square kilometres of land and food processing factories in northern Argentina
. He has been awarded as the "Business Man of the year" in 1995. In 1999 he received in Italy the "Leonardo Award", given to the foreign businessman of the year. He also received the highest awards in Armenia for his activities.
Rise to prominence
Eduardo Eurnekian was born to immigrants from ArmeniaArmenia
Armenia , officially the Republic of Armenia , is a landlocked mountainous country in the Caucasus region of Eurasia...
, in 1932. His family established a textile
Textile
A textile or cloth is a flexible woven material consisting of a network of natural or artificial fibres often referred to as thread or yarn. Yarn is produced by spinning raw fibres of wool, flax, cotton, or other material to produce long strands...
manufacturer which prospered with the Argentine economy and became an important supplier to international sporting apparel firm Puma
PUMA AG
Puma SE, officially branded as PUMA, is a major German multinational company that produces high-end athletic shoes, lifestyle footwear and other sportswear. Formed in 1924 as Gebrüder Dassler Schuhfabrik by Adolf and Rudolf Dassler, relationships between the two brothers deteriorated until the two...
; but which, like many Argentine textile makers, nearly collapsed after Economy Minister José Alfredo Martínez de Hoz
José Alfredo Martínez de Hoz
José Alfredo Martínez de Hoz was an Argentine executive and policy maker. He served as Minister of the Economy under de facto President Jorge Rafael Videla between 1976 and 1981, and shaped economic policy during the self-styled National Reorganization Process military dictatorship.-Early...
's round of free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
and deregulatory policies led to a severe crisis, in 1981.
The Eurnekian family reportedly borrowed heavily from the former Argentine small business lender, BANADE, and in 1988, Eduardo Eurnekian purchased "Cablevisión S.A," then a failing local cable tv station. His investment became increasingly lucrative following Economy Minister Domingo Cavallo
Domingo Cavallo
Domingo Felipe "Mingo" Cavallo is an Argentine economist and politician. He has a long history of public service and is known for implementing the Convertibilidad plan, which fixed the dollar-peso exchange rate at 1:1 between 1991 and 2001, which brought the Argentine inflation rate down from over...
's implementation of the Convertibility Plan
Argentine Currency Board
The Argentine Currency Board pegged the Argentine peso to the U.S. dollar between 1991 and 2002 in an attempt to eliminate hyperinflation and stimulate economic growth. While it initially met with considerable success, the board's actions ultimately failed. In contrast of what most people think,...
in 1991, which brought financial and price stability to Argentina during the 1990s. Eurnekian in 1994 sold a 51% stake in Cablevision S.A. (by then Argentina's second-largest cable operator), to Tele-Communications Inc.
Tele-Communications Inc.
Tele-Communications, Inc. or TCI was a cable television provider in the United States, for much of its history controlled by Bob Magness and John Malone....
for US$350 million and in 1997, netted US$320 million by selling most of his remaining shares to local investment giant CEI Citicorp Holdings SA.
Eurnekian also held controlling interest in "América TV", four radio stations and a Buenos Aires financial daily, El Cronista. "Aeropuertos Argentina 2000," a consortium led by Eurnekian won a 30-year concession in 1998 to run 33 of the Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
's main airports. He also bought the Howard Johnson's
Howard Johnson's
Howard Johnson's is a chain of hotels and restaurants, located primarily throughout the United States and Canada. Throughout the 1960s and 1970s, Howard Johnson's was the largest restaurant chain in the United States, with over 1,000 restaurants...
master franchise in Argentina from Cendant
Cendant
Cendant Corporation was a New York-based provider of business and consumer services, primarily within the real estate and travel industries. In 2005 and 2006, Cendant broke up and spun off or sold its constituent businesses...
, and invested in a regional airline company, LAPA
LAPA
Líneas Aéreas Privadas Argentinas , more commonly known by the acronym LAPA, was an airline based in Buenos Aires, Argentina. At its heyday, the carrier operated international services to the United States and Uruguay, as well as an extensive domestic network within Argentina. Additionally, the...
.
Investments in Armenia
On December 17, 2001, Eurnekian's Corporación América signed a 30-year concession agreement with the Armenian government for the management of operations of Zvartnots International AirportZvartnots International Airport
Zvartnots International Airport is located near Zvartnots, west of Yerevan, the capital city of Armenia. The airport was built in 1961. It is now the busiest airport in Armenia and the Caucasus. The draftsmen of the airport included architects M. Khachikyan, A. Tarkhanyan, J. Sheqhlyan, L....
, which is Armenia's
Armenia
Armenia , officially the Republic of Armenia , is a landlocked mountainous country in the Caucasus region of Eurasia...
largest airport. The company launched the construction of a new terminal
Airport terminal
An airport terminal is a building at an airport where passengers transfer between ground transportation and the facilities that allow them to board and disembark from aircraft....
which brought the airport into conformity with international standards. The total cost of the project was more than $50 million.
Eurnekian also unveiled plans to invest millions of dollars into Armenia's
Armenia
Armenia , officially the Republic of Armenia , is a landlocked mountainous country in the Caucasus region of Eurasia...
agribusiness sector as he set up a joint venture
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
with a local firm. Senior executives from Tierras de Armenia, a Yerevan
Yerevan
Yerevan is the capital and largest city of Armenia and one of the world's oldest continuously-inhabited cities. Situated along the Hrazdan River, Yerevan is the administrative, cultural, and industrial center of the country...
-based company belonging to Eurnekian, and the Max Group (owned by Harutiun Pambukian, a parliamentarian close to former President
President
A president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...
Robert Kocharian
Robert Kocharian
Robert Kocharyan was the second President of Armenia, serving from 1998 till 2008. He was previously President of Nagorno-Karabakh from 1994 to 1997 and Prime Minister of Armenia from 1997 to 1998.-Biography:...
), reported a US$25 million joint venture to develop 60 km2 (24 mi2) of arid land in the southern Armavir
Armavir (province)
Armavir is a province of Armenia with the capital in Armavir. It is in the west of the country, located in the Ararat valley, between Mount Ararat and Mount Aragats, and shares a 45-mile border with Turkey to the south and west...
region into fruit orchards and a fruit processing plant.
Eurnekian has built an almost $1 billion media empire since the early 1990s and is now the majority owner of a consortium operating 76 airport
Airport
An airport is a location where aircraft such as fixed-wing aircraft, helicopters, and blimps take off and land. Aircraft may be stored or maintained at an airport...
s worldwide, mostly across Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
and elsewhere in South America
South America
South America is a continent situated in the Western Hemisphere, mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere. The continent is also considered a subcontinent of the Americas. It is bordered on the west by the Pacific Ocean and on the north and east...
as well as in Armenia
Armenia
Armenia , officially the Republic of Armenia , is a landlocked mountainous country in the Caucasus region of Eurasia...
. He also owns 2,000 square kilometres of land and food processing factories in northern Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
. He has been awarded as the "Business Man of the year" in 1995. In 1999 he received in Italy the "Leonardo Award", given to the foreign businessman of the year. He also received the highest awards in Armenia for his activities.