💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

New Mexico City airport to go in service by mid-2021: official

Published 04/26/2019, 05:47 PM
Updated 04/26/2019, 05:50 PM
© Reuters. FILE PHOTO: Mexico's President Andres Manuel Lopez Obrador gives a speech during the inauguration of the Aerospace Fair 2019 at the Santa Lucia military airbase in Tecamac

MEXICO CITY (Reuters) - A new Mexico City airport intended to replace a project canceled by President Andres Manuel Lopez Obrador should be ready for use in mid-2021 with a starting capacity of 20 million passengers per year, a senior official said on Friday.

Brigadier General Ricardo Vallejo, head of the military college of engineers, told a news conference the first phase of the airport to be built north of Mexico City by the town of Santa Lucia should be completed by June 2021.

"However, its maximum potential, its development potential, will be over 50 years," Vallejo said.

He said the airport, due to be built by the military, would begin with an annual capacity for 20 million passengers that could eventually rise to 80 million.

The new airport has divided opinion since Lopez Obrador in October abruptly canceled a $13 billion partially built hub a few weeks before taking office. He argued that the facility on Mexico City's eastern flank was tainted by corruption and too costly.

Lopez Obrador's decision sparked a major sell-off in Mexican financial assets. Critics of the new project also argue that Santa Lucia's distance from the capital could hurt tourism by complicating travel for connecting flights from Mexico City.

Santa Lucia lies some 29 miles (47 km) north of the current Benito Juarez International Airport. Still, some engineering experts say the two hubs may not be able to operate simultaneously.

Transport and Communications Minister Javier Jimenez Espriu rejects that view. He told the news conference a third terminal would be added to the Benito Juarez airport where the presidential hangar previously stood.

That would raise the current airport's capacity to 50 million passengers a year, Jimenez said.

The government aims to save billions of dollars with the Santa Lucia site. But questions remain about carrying out the plan, in part due to the government's own statements.

© Reuters. FILE PHOTO: Mexico's President Andres Manuel Lopez Obrador gives a speech during the inauguration of the Aerospace Fair 2019 at the Santa Lucia military airbase in Tecamac

In December, Lopez Obrador said construction on the Santa Lucia hub would start in January. Earlier this week he said construction would begin next Monday. At the news conference on Friday he said construction would begin in June, "once we have all the requirements."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.