Airlines Decry Mexico City's Passenger Fees
Airlines & Airports Janeen Christoff February 09, 2018

Representatives for the aviation industry are decrying an increase in international passenger fees for arrivals to Mexico City.
According to a report by Reuters, airlines say the fees are hurting the country’s economic competitiveness, and they are asking that the hike be reversed.
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The increased charges have been levied in order to help finance a $2 billion bond for the new Mexico City airport. The government raised the rate 25 percent in January to $51.12 per passenger.
The International Air Transport Association (IATA) and the Latin America and Caribbean Air Transport Association (ALTA) are both opposed to the increases. Andres Manuel Lopez Obrador, who is running as a candidate in Mexico’s presidential election taking place during July, has vowed to scrap the fee.
In a letter, the associations warned that the new fees will result in fewer passengers traveling through the Mexico City airport, lowering revenues. They say the fee hike could result in 1.7 million fewer passengers per year, which would be a drop of almost 11 percent from the 15.8 million international visitors who traveled through the airport in 2017.
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The associations offered an alternative, saying that lowering the fee could boost international arrivals at the airport and generate higher spending within the airport itself by arriving international passengers.
The boost in this type of spending could raise the needed money for the bond.
“The capacity of the current Mexico City airport is at near the top, and that is hindering growth in the country and the region,” ALTA executive director Luis Felipe de Oliveira told Reuters. “However, we believe there is a better way to finance the new airport.”
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