1. 16.781 Planning and Design of Airport Systems Planning for a New International Hub in Mexico City Alvaro Covarrubias December 10 th, 2002

2. Air market between North America and Central/South America. Competitive analysis of different hubs. Case studies: airports trying to become hubs. A strategy for Mexico City. Outline

3. Air Market - Airports For historical, cultural and geographic reasons, Miami is the main gateway for traffic from Central and South America. Available Seats to Central and South America MIA DFW IAH EWR ATL LAX JFK Source: OAG (2001)

4. Air Market - Airlines As MIA is a hub for AA, the airline and its partners dominates the traffic between the two regions. Available Seats to Central and South America AA LAN TACA TAMIBERIA UNITED VARIG DELTA AEROLINEAS ARGENTINAS SUMMA CONTINENTAL OTHER INDEPENDENT COPA Source: OAG (2001)

5. Air Market – Main Destination in Central/South America Although Central America represents almost 45% of the AS… Source: OAG (2001)

6. Air Market – Main Destination in Central/South America It only represents a 20% of the ASM. The business is in South America. Source: OAG (2001)

7. Competitive Analysis – Geographic Location Evaluate the geographic suitability of hubs, for traffic between the 13 airports with more ASM from US gateways…

8. Competitive Analysis – Geographic Location To 18 of the largest metropolitan areas in the US and Canada. Results: - MEX would only be competitive for traffic to West Coast and Texas from Central America, LIM, SCL, EZE. - IAH, DFW and LAX would be the competitors.

9. Competitive Analysis – Delays/Capacity IAH and DFW: –High On-Time performance. –High Capacity to grow. New runways are going to be built. LAX: –Lower than average on-time performance. –Almost impossible to grow.

10. Competitive Analysis – Design DFW: Linear buildings, not good for connections. IAH: Hybrid design, regular quality for connections. LAX: Finger piers, long separation between international and domestic terminals, no people-mover.

11. Case Studies

12. Conclusions Search for an alliance to operate the hub. Build airport gradually, be flexible. Design for easy connections. Engage with airlines, try joint operation of terminals. Land banking. Liberalize air service agreements. Volumes do not allow hub operation and multi-airports in Mexico City.

13. Thank you for your attention! Alvaro Covarrubias alvaroc@mit.edu