Friday, April 23, 2010

Citigroup Questions Viability of Riviera Maya Airport. What do you think?

This article below has been translated by Google Translate from Noticaribe Newspaper.  In it, Citigroup (who is the largest stockholder in Aeromexico Airlines -- news to me!) questions the viability of the new airport project.

What do you think?  Feel free to leave your comments on at the original blog post site so that all can see and respond. 


Maintain financial viability doubts RM Airport

April 21, 2010

The Riviera Maya commercial air traffic will require "incremental" to reach its equilibrium point, although "private and charter flights will not be enough" for that aim, says Citigroup specialist.

MEXICO CITY, MX .- The powerful U.S. financial group Citigroup, the largest shareholder controller of commercial airlines in the country: Grupo Aeromexico, continues to have doubts about the feasibility of building a new airport in the tourist corridor in the Riviera Maya in Quintana Roo, as 130 kilometers ranks the second largest airport in the country, Cancun.

"We believe that the Riviera Maya has little economic sense for the company which controls it," says the specialist sector stock in Citigroup, Stephen Trent.

Other brokerages other than Citigroup had previously said that the initial investment of 3,200 million pesos (about $ 262 million at today's exchange rate) to build the new terminal is very substantial. That amount could increase to 4,000 million (about $ 328 million) in later stages.

For example, Vector Casa de Bolsa recently said that because a relevant factor to be considered for award of the concession is for those who charge the lowest fare to travelers and derived from the amount of investment required, it could make less attractive to potential investors of this project .

For Trent, the Riviera Maya commercial air traffic will require "incremental" to reach break even, while noting that "private and charter flights will not be enough" for that purpose.

Also says that it does not "clear" where could the passenger traffic, pointing out that currently serves Cancun approximately 150 commercial airlines.

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