Construction works of NAIM will continue until further notice. The new federal government led by Andrés Manuel López Obrador (AMLO) presented the new GACM team, who announced that works will not be stopped until the analysis of the 2018 advancement is finished and presented.
The new government announced an offer to repurchase NAIM bonds in advance. At a starting price of US$0.90, AMLO’s administration planned to purchase US$1.8 billion worth of NAIM bonds. Bondholders turned down the offer and demanded that the new government offers “express warranties” that the debt will be honored. Otherwise, the new administration should make a larger repurchase offer or higher compensation.
In local aviation news, passenger traffic data from Mexican airlines and airport groups for November has started to be released. Aeroméxico increased its passenger traffic by 1.5 percent compared to a 16.6 percent increase by Volaris. Similarly, OMA saw 1.83 million passengers go through its airport terminals, which accounted for an 11.2 percent increase in passenger traffic.
The incoming government of Jair Bolsonaro in Brazil will decide whether the Embraer-Boeing merger proceeds. A Brazilian court has blocked this process as Michel Temer’s administration comes to an end. Avianca and Copa Airlines have signed an alliance with United Airlines to boost their destinations network.
Did you miss Mexico Aerospace Forum 2018 on Wednesday? Check out the highlights of the event in our blog to get all the insights of our speakers! Find out what Carlos Robles, Vice President of Bombardier Queretaro said about the company’s Mexico operations. SMEs have a lot of potential to grow in global aerospace value chains, and TechBA, Monterrey Aerocluster, Queretaro Aerocluster and UNAQ agree. The fact that NAIM in Texcoco is out does not mean the twilight of Mexican air connectivity. Check out what Mexicana MRO, SAE, Redwings and EY said about regional airport infrastructure. The global aerospace industry is bound to experience an exponential growth, but it is up to Mexico to harness the opportunities, said Felipe Sandoval, General Manager of Safran Seats and Aerosystems Operations and President of FEMIA.
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The Texcoco Affair
Mexico’s new President Andrés Manuel López Obrador (AMLO) reaffirmed his decision to cancel the construction of NAIM in Texcoco and instead develop in the Santa Lucia military base.
Construction works of NAIM will continue until the results of the project evaluation are presented.
AMLO said that NAIM investments are guaranteed. GACM will launch an offer to repurchase US$1.8 billion worth of bonds.
The money used to repurchase the NAIM bonds in advance will come from the Mexcat fund, which was originally created to manage the project’s resources. For Gerardo Copca of MetAnálisis, the repurchase of NAIM bonds could impact Mexico’s public finances, but it will create trust among investors.
On Friday, Mexico’s new Minister of Tourism, Miguel Torruco, said the International Airport of Santa Lucia (AISL) would be used for international flights and AICM for domestic routes. Hours later, Javier Jiménez Espriú, the new Minister of Communications and Transport, pointed out that Torruco provided incorrect information. Both AICM and AISL will operate international routes.
Mexico’s Aviation Thrust
Mexico’s presidential B787-8 flew to San Bernardino, California to be put up for sale. The aircraft cost US$125.4 million and has been in operation since February 2016.
Alliances, Mergers and Aircraft
Avianca and Copa Airlines signed an alliance with United to widen the reach of their routes between the US and 19 Latin American countries.
A Brazilian court has blocked the merger of Embraer and Boeing. The government of Jair Bolsonaro will be in charge of deciding the future of that agreement.
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