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Mexico City: future airport infrastructure mired in bad decisions

Analysis

Although Mexican airlines continue to battle currency fluctuation triggered in large part by ongoing tariff threats from the US, overall they remain comfortable with domestic demand, and transborder capacity is starting to rationalise. However, a huge cloud of uncertainty is hovering over the fate of Mexico City's airport infrastructure.

After Mexico's president Andres Manuel Lopez Obrador (AMLO) cancelled completion of a partially constructed new airport, he offered less than attractive alternatives that include bolstering Toluca airport and constructing two new runways at an air force base near Mexico City. But the runway construction has come under criticism, and the project is reportedly on hold.

Plans are under way for a third terminal at Mexico City Juarez, but it remains to be seen how much the expansion will alleviate congestion at an airport that is already operating well above its capacity. And ultimately, Mexico City's potential to become a powerful global hub will be significantly diminished.

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