Aviation industry groups are pressing Mexico"™s government to reverse a January fee increase for international passengers arriving in Mexico City, claiming it is hurting the airlines and the country"™s economic competitiveness.
The fee was raised 25 percent to $51.12 per passenger this year to help finance a $2 billion bond for the construction of a new Norman Foster-designed airport, a $13.4 billion development due to open in 2020. Andres Manuel Lopez Obrador, the frontrunner candidate in Mexico"™s July presidential election, has vowed to scrap it.
The International Air Transport Association (IATA) and the Latin America and Caribbean Air Transport Association (ALTA), which represent airlines, opposed the increase, saying it made the existing Mexico City airport less competitive.
The biggest Mexican airlines using the airport are AeroMexico (AEROMEX.MX), Interjet and Volaris, and international airlines use it too.
The associations sent a letter to Deputy Transport Minister Yuriria Mascott and Deputy Finance Minister Miguel Messmacher last month, ALTA executive director Luis Felipe de Oliveira said on Thursday.
In the letter, the associations warned the fee hike could result in 1.7 million fewer passengers per year and lead to lower overall revenues, he said. That would represent a drop of almost 11 percent from the 15.8 million international passengers served by the Mexico City airport in 2017, according to airport data.
So far, he said, the associations have received no reply.
Mexico City"™s international airport, the Ministry of Communications and Transportation and Finance Ministry did not respond to requests for comment.
"The capacity of the current Mexico City airport is at near the top and that is hindering growth in the country and the region," de Oliveira said. "However, we believe there is a better way to finance the new airport."
One alternative put forward by the associations would be to lower the fee to encourage international travel…
