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Mexico: Aviation Industry Opportunities
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Summary
Mexico is no new client to American aviation exporters. From 1990 to 2006, Mexico ranked as a top 30
aerospace market for U.S. exporters – a key, ever-advancing sector within aviation. During this period, export
sales from the U.S. to Mexico grew by an annual average of 23.87%. Moreover, this relationship has only been
strengthened through the years. In 1998, the Mexican government began privatizing operations within the
national airport system – a privatization policy that aided in the aviation industry’s remarkable growth. Today,
Mexico has the most developed airport infrastructure in Latin America. As well, Mexico City serves as the single
most important airport in the region, capable of servicing more than 32 million passengers annually and 900 flights
daily. A pattern is noticeable in Mexico: more passengers are flying, a greater number of airlines are operating,
and airports are upgrading and expanding both physically and operationally. In short, Mexican aviation offers
opportunities to nearly all who comprise this immense industry.
Market Demand
To effectively interpret the size of demand in such a vast market, many smaller sectors within aviation must be
viewed independently, for the means to best measure them is not always alike. The most obvious sector, aircraft
manufacturing, alone provided $127M in sales for foreign firms exporting to Mexico in 2006, 52% of which came
from the United States
1
. Additionally, U.S. firms continue to dominate aircraft sales in Mexico in the first quarter of
2007, maintaining a 93% market share of the $14.5M in export transactions thus far
1
. Contrastingly, the main
imported aviation service (i.e. international flight service to and from Mexico) is also a promising market; in 2006,
23 million passengers flew from Mexico internationally
2
. Even domestic carriers offer opportunity to foreign
manufacturers of aircrafts and equipment. In this category of airline, low-cost domestic carriers are being started
with relative frequency. For instance, since 2004, six new, low-cost Mexican airlines have commenced
operations, which collectively carried 27.5% of domestic passengers in the first quarter of 2007
3
.
In order to defer traffic normally experienced by the Mexico City airport, four peripheral airports (Puebla, Toluca,
Queretero and Cuernavaca), which comprise the Metropolitan Airports System, have been expanded. Throughout
the last five years, over $1B has been invested in this peripheral airport project. These four airports now service
an ever-growing number of airlines and passengers. And Mexico City airport itself will benefit from a federally
funded $227M expansion project to take place throughout 2007.
Outside of the most populous area in Mexico (Mexico City), growth is occurring as well. In order to welcome large
transport aircrafts and create multi-modal connections, the government is securing alliances with freight
companies. This appears to be particularly promising for those in the air cargo industry. Grupo Aeroportuario del
Pacifico (GAP) will invest $110M to increase infrastructure in 12 separate airports, including Puerto Vallarta and
Los Cabos – both of which will have their capacity doubled. As one of the largest carriers in Mexico, Aeromexico
will spend over $600M in order to renovate and expand their fleet to 66 aircrafts by the end of 2011. Even the
cargo hubs in Guadalajara and Monterrey, which connect other domestic and international airports, are to be
expanded. And the most hopeful news in the industry is that of the National Infrastructure Program, which
1
World Trade Atlas Internet Edition.
2
Estadística Aérea de la Secretaría de Comunicaciones y Transportes, “La Aviación Mexicana en Cifras 1989-2006.”
http://dgac.sct.gob.mx/index.php?id=467.
3
Estadística Aérea de la Secretaría de Comunicaciones y Transportes, “Estadística Mensual por Empresa Enero-
Marzo de 2007.” http://dgac.sct.gob.mx/index.php?id=467.
Mexico: Aviation Industry Opportunities
Silvia Cardenas, Patrick Hess
August 2007
Mexico: Aviation Industry Opportunities
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Mexican President Calderon announced recently. If passed, the program will most likely yield $5.5B over the next
five years in airport investment
2
. The Mexican aviation market has one certainty: opportunities are as diverse and
numerous as is the industry itself.
Market Data
Clearly, a large, diverse market for aviation is present in Mexico; however, the trends in the market are probably of
greater interest to likely exporters. With regards to current market trends, the aviation sector appears as strong as
it has been in decades. For instance, the number of passengers traveling internationally from Mexico has
continuously grown 6.2% annually since 1989
2
. Generally, this market tendency should favor American firms
considering that 90% of Mexican international trade is done through free trade arrangements, such as NAFTA. As
well, international travel is the most applicable passenger service for U.S. firms, as it’s open to foreign carriers in
Mexico. To more precisely view one profound trend in international passenger travel from Mexico, the graph
below displays the major regions to which passengers fly
2
. Figures on the vertical axis of the graph are in 1,000s
of passengers annually for the U.S. and TOTAL (e.g. 10,000 = 10,000,000) and 100s for all other regions (e.g.
10,000 = 1,000,000). One can see that travel to the U.S. is a primary route for many passengers – over 79% in
fact.
Airports in Mexico are experiencing growth as well. In addition to the promising announcement of the National
Infrastructure Program (see section below), registered airports and airfields (commercial and non-commercial)
have increased by nearly 11% annually over the last five years
2
. Mexican airlines have responded to the growth
in airports and passengers by adding to their fleets of aircraft – last year by 9.6% and 11% in the last five years
2
.
The aforementioned low cost airlines that are sprouting up in Mexico carried 4.3 million passengers in 2006. Yet,
that figure looks less significant compared to the 1 million passengers who used these low cost services in just the
first month of 2007.
Aerospace groups have announced that they will invest $279M into the sector over the next few years. Goodrich
will invest $100 million for the construction of an airplane parts plant in Baja California, which will generate
opportunities to those that supply such manufacturers. Even the helicopter market – a smaller, yet increasingly
integral part of the aviation industry – shows strong growth prospects. In fact, the number of registered
helicopters in Mexico grew by 17% during 2006
2
.
National Infrastructure Plan
On July 18, 2007, Mexico’s President, Felipe Calderon, unveiled his administration’s master infrastructure
development plan – titled “Programa Nacional de Infraestructura.” The expenditures associated with the program
0
5,000
10,000
15,000
20,000
25,000
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
0
500
1,000
1,500
2,000
2,500
TOTAL U.S.A CANADA CENTRAL AMERICA & CARIBBEAN SOUTH AMERICA EUROPE ASIA
Mexico: Aviation Industry Opportunities
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are to be implemented through the remainder of President Calderon’s term (2007 – 2012); yet, some of the
objectives within the plan have an outlook that extends past this time frame. The program, including aviation,
covers ten sectors
4
. Depending on whether Congress approves the current fiscal reform proposal (which will
generate the revenue necessary for the program), opportunities will be available as soon as mid-November 2007
for U.S. businesses to become primary/sub-contractors for suppliers to these multi-year infrastructure projects.
U.S. firms interested in learning more about specific upcoming tenders are encouraged to be in touch with the
U.S. Embassy and Commercial Service, which can arrange appointments with key officials and identify sources of
financing for your U.S. made good or service.
The primary project to increase infrastructure in aviation is to construct three entirely new commercial airports in
the Mayan Riviera, Puerto Peñasco (AKA Rocky Point) and Ensenada. Thirty-one existing airports will be
substantially expanded, including Toluca, Puebla, Cancun, San Jose del Cabo, Loreto, Nuevo Leon, Monterrey,
Guadalajara and Puerto Vallarta
5
. All sixteen of the projects designed to accomplish these developments have
either started or will start no later than 2008. An additional two more expansion projects and a new airport plan (in
Merida) are currently being studied
6
. Of the $5.5B in investment required by the aviation portion of the plan, over
45% is to come from the private sector and the remainder from the Mexican government.
Import Market
Mexico’s economy and population are both growing steadily. From 2002 to 2006, GDP grew by 6.5% annually
and the population is currently around 104 million inhabitants
7
. Additionally, 40.5% of the population is under the
age of 20. These socioeconomic demographics create, and will continue to create, additional consumers of
aviation products and services with increasing money to spend. As well, Mexico City’s airport, which ranks 33
rd
and 44
th
in the world in number of annual flights and passengers respectively
8
, possesses great opportunities for
many firms in aviation.
As stated earlier, foreign companies sold aircraft and spacecraft products worth $127M to Mexico in 2006. Albeit
large and significant, this is not the entire industry; in fact, it is merely one part. Both domestically made products
and all aviation services are excluded from this figure, which are two very important categories that possess
opportunity for anyone in aviation attempting to grow their business in Mexico. As such, further analysis is
devoted to these vital sub-sectors below.
Domestic Production
In 2006, Mexico generated $305M in aviation export sales, 99.7% of which was sold to the United States
1
. As the
“Market Demand” section stated, the U.S. exported $127M of such products to Mexico. Therefore, Mexico exports
2.4 times as much to the U.S. as the U.S exports to Mexico. Initially, it may appear that Mexico has a strong
upper hand and that aviation in Mexico is a saturated marketplace. However, although these domestic producers
are potential competition for a U.S. manufacturer of aviation goods, many of these firms operate at a different
stage in the production cycle and never intend on selling to the Mexican market. Hence, Mexican aviation firms
can be complementary to U.S. counterparts. Moreover, for those Mexican companies that do pose a threat, their
businesses represent a sizeable market that is open to importation. No barrier exists to the customers to whom
these Mexican firms sell; rather, current supply of more effective products from foreign counterparts does not meet
demand.
An additional Mexican manufacturing marvel that has thoroughly benefited U.S. exporters is the maquiladora
industry, which is primarily along the U.S.-Mexico border. This business zone exemplifies how beneficial domestic
manufacturers can be to foreign suppliers and it possesses numerous aviation manufacturers within it. In fact,
maquiladoras demand $70B annually in production inputs, the majority of which comes from the United States. In
4
Programa Nacional de Infraestructura 2007 – 2012, “Visión de Largo Plano”. www.infraestructura.gob.mx.
5
Cruz, Lilian and Cordoba, Mayela. Reforma, “Planean 3 aeropuertos” (07/19/2007).
6
Programa Nacional de Infraestructura 2007 – 2012, “Anexos”. www.infraestructura.gob.mx.
7
World Bank, 2006 World Development Indicators. http://devdata.worldbank.org/wdi2006/contents/home.htm.
8
Air Transit World: World Airline Report (July 2007), “The World’s Top 50 Airports” pp. 50.
Mexico: Aviation Industry Opportunities
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addition, U.S. businesses have provided 57.4% of the investment in maquiladoras. Currently, around 56,000
American firms supply these Mexican manufacturers and still the numbers continue to grow.
Passenger Services
It is difficult to accurately quantify services in this sector with dollars; therefore, air traffic amongst passengers is
used in this report to gauge both the size of the market and the trend in passenger services. This segment of
aviation includes both commercial and privately charted services. The graph below (titled “Total Passenger
Transported Domestically and Internationally”) shows the trend of growth and market size related to passenger
services in Mexico (includes all airlines with operations in Mexico)
1
. In 2006, over 48 million passengers flew
either to, from or within Mexico aboard one of the many airlines operating in the country. Since 1989, airlines
have collectively shown steady growth; nevertheless, the more impressive growth of foreign firms in Mexico
indicates a penetrable international market for providers of these services.
Cargo Services
Air cargo service providers, such as FedEx and DHL, have tremendous business operations in Mexico. The
graph below depicts the trend and quantity of cargo (measured in U.S. tons) transported annually by Mexican and
international carriers (and the total of both)
1
. Impressively, over 671 thousand tons of cargo was transported in,
out or throughout Mexico last year by air. The percentage figures to the left show the strong average growth in
this sector of aviation services since 1989. Foreign carriers maintain a majority share hold that appears to be
increasing in strength.
Total Passengers Transported Domestically and Internationally
Commercial/Regular and Privately Chartered Operations
- THOUSANDS -
5.8%
4.7%
8.3%
Average Annual
Change 29,807
27,830
26,40424,84624,05125,04825,76025,473
23,40422,128
20,07020,100
23,949
20,692
19,998
17,667
15,659
13,733
18,91818,280
17,119
14,43013,20513,23413,65212,36111,83310,72710,2268,5208,8187,8836,9456,4754,8314,843
48,725
46,110
43,523
39,276
37,25638,28239,41237,834
35,237
32,85532,767
28,574
20,490
18,576
26,943
24,142
28,620 30,296
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Mexican Carriers Foreign Carriers TOTAL
Total Cargo Transported Domestically and Internationally
Commercial/Regular Operations and Privately Chartered Operations
- TONS -
8.2%
6.9%
9.3%
Average Annual
Change
276,573294,584
256,563
215,033223,66688,427 104,528 117,861 122,204
117,718 126,591
169,685
154,194
192,152 201,385
217,042 195,206 196,600
394,551
366,543
362,387
332,821
314,485
106,79981,31076,22486,552
157,335
183,859
317,042320,194
244,163
189,601
151,757
309,597
358,230
671,125661,127
618,950
547,854538,151
174,980180,751
199,171
229,003
275,053
310,450 305,952
359,286
436,315
521,579 534,084 553,436
506,197
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Mexican Carriers Foreign Carriers TOTAL
Mexico: Aviation Industry Opportunities
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Competition
The two principal Mexican airlines that serve as the primary competition amongst Mexican firms are Aeromexico
and Mexicana (formally Aerovias de Mexico and Mexicana de Aviacion). These airlines generated around $3.3B
in operating revenue during 2006, transporting customers both domestically and abroad
9
. And Aeromexico and
Mexicana handedly dominate the market in comparison to other Mexican Airlines in regards to international flight
services, carrying 95% of passengers flying internationally on a Mexican-based airline
3
. However, such a
stronghold in international travel is not the case against foreign competition. In the first quarter of 2007, the other
53 airlines servicing international flights (i.e. excluding Aeromexico and Mexicana) carried 77.5% of passengers
3
.
Over half of the carriers providing international flight service in Mexico are neither American nor Mexican; yet, U.S.
firms carried just fewer than 60% of passengers flying internationally during the first quarter of 2007
3
.
Below are two tables that contain the airlines operating in Mexico during the first quarter of 2007
3
. Total
passengers carried during this three-month period determine the order, from greatest to smallest, in which the
airlines are listed. Firms that are neither Mexican nor American are highlighted in yellow. The first table contains
solely international airlines and in the following are only Mexican airlines.
9
Air Transit World: World Airline Report (July 2007), “World Airline Financial Results 2006” pp. 39-42.
COMMERCIAL 2007
PASSENGERS TRANSPORTED BY FOREIGN CARRIERS
Firm Jan Feb Mar Total
AMERICAN AIRLINES 250,480 224,109 274,786 749,375
CONTINENTAL AIRLINES 162,769 153,572 191,782 508,123
ALASKA AIRLINES 145,848 138,938 159,673 444,459
DELTA AIRLINES 144,903 126,279 146,894 418,076
EXPRESS JET 105,102 93,348 107,030 305,480
NORTHWEST 65,335 90,342 128,714 284,391
UNITED AIRLINES 89,133 79,645 95,928 264,706
AMERICA WEST 62,641 59,200 72,367 194,208
FRONTIER 59,877 55,606 74,402 189,885
AIR TRANSAT 64,991 59,625 61,551 186,167
US AIR 55,935 51,536 62,066 169,537
AIR CANADA 54,273 52,958 58,649 165,880
MN AIRLINES 25,064 32,015 44,022 101,101
IBERIA 25,009 20,038 30,598 75,645
AIR FRANCE 24,687 22,523 27,668 74,878
CIA. PANAMEÑA DE AVIACION 23,596 20,822 23,538 67,956
AMERICAN EAGLE 23,336 17,835 21,125 62,296
ATLANTIC 19,107 19,270 22,744 61,121
LUFTHANSA 20,274 18,262 20,109 58,645
SPIRIT AIRLINES 11,552 16,014 20,046 47,612
K L M 15,519 13,421 15,762 44,702
BRENDA USA 3000 11,239 13,855 18,560 43,654
LAN CHILE AIRLINES 14,309 12,936 12,795 40,040
COURSE AIR 10,629 10,800 12,258 33,687
JET BLUE AIR 8,042 8,361 17,236 33,639
MARTIN AIR HOLLAND 12,094 9,465 10,185 31,744
MESA AIRLINES 10,652 9,871 11,214 31,737
AIR ESPAÑA 11,113 10,220 9,715 31,048
AMERICAN TRANS AIR 10,600 8,127 11,410 30,137
CUBANA DE AVIACION 10,795 8,187 10,396 29,378
IBERWORLD 8,270 8459 11,659 28,388
BRITISH AIRWAYS 8,664 7,137 9,030 24,831
LTU LUFTHANSPORT UNTER 7,232 6,653 7,425 21,310
LIVINGSTON SpA 7,001 6,999 7,224 21,224
AVIANCA 7,713 5,481 7,994 21,188
LACSA 6,023 5,530 6,425 17,978
TACA INTERNACIONAL 6,361 5,454 5,679 17,494
AVIATECA 4,811 4,140 6,554 15,505
JAPAN AIRLINES 5,942 3,617 5,545 15,104
STAR AIRLINES 4,252 4,177 4,907 13,336
LANPERU 4,206 4,213 4,082 12,501
AEROLINEAS ARGENTINAS 2,921 3,687 4,456 11,064
LLOYD AEREO BOLIVIANO 3,333 2,370 1,108 6,811
CHAMPION AIR 2,126 1,899 2,358 6,383
VOLARE 1,231 994 1043 3,268
AUSTRIAN 551 755 452 1,758
T o t a l 1,629,541 1,528,745 1,859,164 5,017,450
Mexico: Aviation Industry Opportunities
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The additional table below shows the main providers of domestic service
3
, as these are potential clients to U.S.
firms that provide goods and services to the airline industry. Airlines in Mexico, just like anywhere else, pose
opportunity for the businesses that maintain and upgrade each airline regardless of nationality.
End Users
Opportunities are available in every aspect of the aviation industry. As this report demonstrates, trends in the
Mexican aviation market are overwhelmingly upward. When the major contributors to the aviation industry (i.e.
airlines, airports, etc.) grow, so do those smaller to mid-sized firms that supply the inputs to these larger industry
contributors. From the smallest of aircraft parts to the maintenance of jet engines to the provision of flight
services, U.S. aviation exporters can provide much to Mexico.
Even in the face of a growing Mexican aviation industry, which often exports to the U.S., arises an opportunity.
For instance, a great amount of foreign direct investment has benefited aerospace manufacturing in Mexico. FDI
finds its way to Mexico in large part due to its proximity to a sizable purchaser – the United States. In fact, last
year Mexico exported $500M in aerospace products according to the Secretariat of Economy - $178M of which
went to the U.S
10
. Yet, the 125 firms that employ 16,500 workers in Mexico’s aerospace industry are not
necessarily competing exporters; rather, they are firms potentially in need of U.S. products and services that will
contribute to the final aerospace goods. Large companies like Bombardier (the third largest airplane manufacturer
in the world) and Honeywell respectively produce fuselages and heat exchanges in Mexico
10
and these
manufacturers are not going anywhere soon. For instance, Bombardier plans to invest $200M in their Mexico
operations by 2016
10
. And a number of companies, with intentions similar to Bombardier, have recently published
plans to operate in Mexico, including but not limited to: Ellison Surface Technologies (Queretaro); Daher (Nogales,
Sonora); Airpas Aviation AG (Puebla); Hawker Beechcraft – HBC (Chihuahua); and Industrias Michelin
10
Poder y Negocios (07/03/2007), “Querétero aeroespacial” pp. 54-60.
COMMERCIAL 2007
PASSENGERS TRANSPORTED BY MEXICAN CARRIERS FOR DOMESTIC SERVICE
Firm Jan Feb Mar Total
AEROVIAS DE MEXICO 437,019 429,089 504,675 1,370,783
MEXICANA DE AVIACION 311,402 293,175 398,594 1,003,171
AVIACSA 284,773 254,855 304,141 843,769
AEROVIAS CARIBE 115,818 127,596 164,833 408,247
VUELA 93,086 100,053 140,799 333,938
AEROLITORAL 95,793 97,627 119,084 312,504
ABC AEROLINEAS 96,440 81,586 111,393 289,419
AEROCALIFORNIA 77,654 85,355 102630 265,639
AVOLAR 71,119 62,946 70,572 204,637
AEROENLACES 59,961 53,302 86,742 200,005
GRUPO AEREO MONTERREY 53,613 47,538 50,777 151,928
AEROLINEAS MESOAMERICANAS 47,740 40948 61,484 150,172
AEROMAR 39,808 36,973 47,289 124,070
LINEAS AEREAS AZTECA 70,803 42,770 0 113,573
T o t a l 1,855,029 1,753,813 2,163,013 5,771,855
COMMERCIAL 2007
PASSENGERS TRANSPORTED BY MEXICAN CARRIERS FOR INTERNATIONAL SERVICE
Firm Jan Feb Mar Total
MEXICANA DE AVIACION 353,962 265,428 347,091 966,481
AEROVIAS DE MEXICO 188,972 143,589 176,185 508,746
AVIACSA 12,259 10,118 10,582 32,959
AEROVIAS CARIBE 10,824 7,454 8,515 26,793
AEROLITORAL 4,567 3,608 4,096 12,271
AEROMAR 0 0 64 64
LINEAS AEREAS AZTECA 0 19 0 19
AEROCALIFORNIA 0 0 0 0
T o t a l 570,584 430,216 546,533 1,547,333
Mexico: Aviation Industry Opportunities
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(Queretaro). That said, a long-term relationship could be built with such a firm, which would most likely prove very
lucrative to any U.S. firm possessing something that any of these multi-million dollar operations require.
Market Entry
NAFTA provides free trade for nearly all products and services between the U.S. and Mexico, and exporting any
of the products and services mentioned in this report are no exception. The best way for American firms to enter
the Mexican market is to initially identify which type of clients they are pursuing. This client may be a stable,
experienced Mexican firm that supplies aviation products and/or services or it might simply be an individual
consumer of the aviation product/service offered by the U.S. firm. In either scenario, a distributor, partner or buyer
within Mexico must be located; however, the latter of the two clients (i.e. individual consumer) necessitates a
greater need for a Mexico contact. Aviation services, for example, have certain business requirements, such as
advertising, which cannot be done nearly as successfully without a solid Mexican counterpart. To supply
throughout the country, more than one local distributor may be needed. Also, manufacturers in Mexico will expect
product warrantees and technical support.
The U.S. Commercial Service can assist in initiating this relationship. Our knowledgeable, experienced staff has
the connections and market know-how to assist in this often-difficult process of entering a foreign country’s import
market. Our offices in Mexico are located in Mexico City, Monterrey, Guadalajara and Tijuana. We provide
numerous services to assist our U.S. clients, such as investigating potential partners and the current market
environment, overcoming governmental impediments through advocacy, and scheduling meetings between the
U.S. exporter and possible Mexican purchasers and distributors of the service/product at hand. For more
information on opportunities in this industry please contact Commercial Specialist Silvia Cardenas by email at
Silvia.Cardenas@mail.doc.gov or phone at (52-55) 5140-2670.
Key Industry Contacts
Secretariat of Communications and Transportation
http://www.sct.gob.mx
The National Infrastructure Plan
http://www.infraestructuta.gob.mx
Airports of Mexico Informational Website
http://www.aeropuertosmexico.com
Aeropuertos y Servicios Auxiliares (ASA)
http://www.asa.gob.mx
Pacific Airport Group (GAP)
http://www.aeropuertosgap.com.mx
Upcoming Trade Shows and Events
International Aviation Trade Show and Convention (2008/2009)
http://www.aeroexpo.com.mx/index.html
CIAM International Trade Show (2008)
http://www.expo-ciam.com
Mexican Business Aviation Exposition (March 12-14, 2008)
http://www.expombae.com
Mexico: Aviation Industry Opportunities
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For More Information
The U.S. Commercial Service in Mexico City can be contacted via e-mail at: Silvia.Cardenas@mail.doc.gov;
Phone: (52-55) 5140-2670; Fax: (52-55) 5566-1115 or visit our website: www.buyusa.gov/mexico.
The U.S. Commercial Service – Your Global Business Partner
With its network of offices across the United States and in more than 80 countries, the U.S. Commercial Service of
the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S.
companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the
U.S. nearest you by visiting http://www.export.gov/.
Comments and Suggestions: We welcome your comments and suggestions regarding this market research.
You can e-mail us your comments/suggestions to: Customer.Care@mail.doc.gov. Please include the name of
the applicable market research in your e-mail. We greatly appreciate your feedback.
Disclaimer: The information provided in this report is intended to be of assistance to U.S. exporters. While we make every
effort to ensure its accuracy, neither the United States government nor any of its employees make any representation as to the
accuracy or completeness of information in this or any other United States government document. Readers are advised to
independently verify any information prior to reliance thereon. The information provided in this report does not constitute legal
advice.
International copyright, U.S. Department of Commerce, 2006. All rights reserved outside of the United States.

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Aviation_Industry

  • 1. Mexico: Aviation Industry Opportunities Page 1 of 8 Let us help you export. export.gov The U.S. Commercial Service — Your global business partner. 800-USA-TRADE Summary Mexico is no new client to American aviation exporters. From 1990 to 2006, Mexico ranked as a top 30 aerospace market for U.S. exporters – a key, ever-advancing sector within aviation. During this period, export sales from the U.S. to Mexico grew by an annual average of 23.87%. Moreover, this relationship has only been strengthened through the years. In 1998, the Mexican government began privatizing operations within the national airport system – a privatization policy that aided in the aviation industry’s remarkable growth. Today, Mexico has the most developed airport infrastructure in Latin America. As well, Mexico City serves as the single most important airport in the region, capable of servicing more than 32 million passengers annually and 900 flights daily. A pattern is noticeable in Mexico: more passengers are flying, a greater number of airlines are operating, and airports are upgrading and expanding both physically and operationally. In short, Mexican aviation offers opportunities to nearly all who comprise this immense industry. Market Demand To effectively interpret the size of demand in such a vast market, many smaller sectors within aviation must be viewed independently, for the means to best measure them is not always alike. The most obvious sector, aircraft manufacturing, alone provided $127M in sales for foreign firms exporting to Mexico in 2006, 52% of which came from the United States 1 . Additionally, U.S. firms continue to dominate aircraft sales in Mexico in the first quarter of 2007, maintaining a 93% market share of the $14.5M in export transactions thus far 1 . Contrastingly, the main imported aviation service (i.e. international flight service to and from Mexico) is also a promising market; in 2006, 23 million passengers flew from Mexico internationally 2 . Even domestic carriers offer opportunity to foreign manufacturers of aircrafts and equipment. In this category of airline, low-cost domestic carriers are being started with relative frequency. For instance, since 2004, six new, low-cost Mexican airlines have commenced operations, which collectively carried 27.5% of domestic passengers in the first quarter of 2007 3 . In order to defer traffic normally experienced by the Mexico City airport, four peripheral airports (Puebla, Toluca, Queretero and Cuernavaca), which comprise the Metropolitan Airports System, have been expanded. Throughout the last five years, over $1B has been invested in this peripheral airport project. These four airports now service an ever-growing number of airlines and passengers. And Mexico City airport itself will benefit from a federally funded $227M expansion project to take place throughout 2007. Outside of the most populous area in Mexico (Mexico City), growth is occurring as well. In order to welcome large transport aircrafts and create multi-modal connections, the government is securing alliances with freight companies. This appears to be particularly promising for those in the air cargo industry. Grupo Aeroportuario del Pacifico (GAP) will invest $110M to increase infrastructure in 12 separate airports, including Puerto Vallarta and Los Cabos – both of which will have their capacity doubled. As one of the largest carriers in Mexico, Aeromexico will spend over $600M in order to renovate and expand their fleet to 66 aircrafts by the end of 2011. Even the cargo hubs in Guadalajara and Monterrey, which connect other domestic and international airports, are to be expanded. And the most hopeful news in the industry is that of the National Infrastructure Program, which 1 World Trade Atlas Internet Edition. 2 Estadística Aérea de la Secretaría de Comunicaciones y Transportes, “La Aviación Mexicana en Cifras 1989-2006.” http://dgac.sct.gob.mx/index.php?id=467. 3 Estadística Aérea de la Secretaría de Comunicaciones y Transportes, “Estadística Mensual por Empresa Enero- Marzo de 2007.” http://dgac.sct.gob.mx/index.php?id=467. Mexico: Aviation Industry Opportunities Silvia Cardenas, Patrick Hess August 2007
  • 2. Mexico: Aviation Industry Opportunities Page 2 of 8 Let us help you export. export.gov The U.S. Commercial Service — Your global business partner. 800-USA-TRADE Mexican President Calderon announced recently. If passed, the program will most likely yield $5.5B over the next five years in airport investment 2 . The Mexican aviation market has one certainty: opportunities are as diverse and numerous as is the industry itself. Market Data Clearly, a large, diverse market for aviation is present in Mexico; however, the trends in the market are probably of greater interest to likely exporters. With regards to current market trends, the aviation sector appears as strong as it has been in decades. For instance, the number of passengers traveling internationally from Mexico has continuously grown 6.2% annually since 1989 2 . Generally, this market tendency should favor American firms considering that 90% of Mexican international trade is done through free trade arrangements, such as NAFTA. As well, international travel is the most applicable passenger service for U.S. firms, as it’s open to foreign carriers in Mexico. To more precisely view one profound trend in international passenger travel from Mexico, the graph below displays the major regions to which passengers fly 2 . Figures on the vertical axis of the graph are in 1,000s of passengers annually for the U.S. and TOTAL (e.g. 10,000 = 10,000,000) and 100s for all other regions (e.g. 10,000 = 1,000,000). One can see that travel to the U.S. is a primary route for many passengers – over 79% in fact. Airports in Mexico are experiencing growth as well. In addition to the promising announcement of the National Infrastructure Program (see section below), registered airports and airfields (commercial and non-commercial) have increased by nearly 11% annually over the last five years 2 . Mexican airlines have responded to the growth in airports and passengers by adding to their fleets of aircraft – last year by 9.6% and 11% in the last five years 2 . The aforementioned low cost airlines that are sprouting up in Mexico carried 4.3 million passengers in 2006. Yet, that figure looks less significant compared to the 1 million passengers who used these low cost services in just the first month of 2007. Aerospace groups have announced that they will invest $279M into the sector over the next few years. Goodrich will invest $100 million for the construction of an airplane parts plant in Baja California, which will generate opportunities to those that supply such manufacturers. Even the helicopter market – a smaller, yet increasingly integral part of the aviation industry – shows strong growth prospects. In fact, the number of registered helicopters in Mexico grew by 17% during 2006 2 . National Infrastructure Plan On July 18, 2007, Mexico’s President, Felipe Calderon, unveiled his administration’s master infrastructure development plan – titled “Programa Nacional de Infraestructura.” The expenditures associated with the program 0 5,000 10,000 15,000 20,000 25,000 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 0 500 1,000 1,500 2,000 2,500 TOTAL U.S.A CANADA CENTRAL AMERICA & CARIBBEAN SOUTH AMERICA EUROPE ASIA
  • 3. Mexico: Aviation Industry Opportunities Page 3 of 8 Let us help you export. export.gov The U.S. Commercial Service — Your global business partner. 800-USA-TRADE are to be implemented through the remainder of President Calderon’s term (2007 – 2012); yet, some of the objectives within the plan have an outlook that extends past this time frame. The program, including aviation, covers ten sectors 4 . Depending on whether Congress approves the current fiscal reform proposal (which will generate the revenue necessary for the program), opportunities will be available as soon as mid-November 2007 for U.S. businesses to become primary/sub-contractors for suppliers to these multi-year infrastructure projects. U.S. firms interested in learning more about specific upcoming tenders are encouraged to be in touch with the U.S. Embassy and Commercial Service, which can arrange appointments with key officials and identify sources of financing for your U.S. made good or service. The primary project to increase infrastructure in aviation is to construct three entirely new commercial airports in the Mayan Riviera, Puerto Peñasco (AKA Rocky Point) and Ensenada. Thirty-one existing airports will be substantially expanded, including Toluca, Puebla, Cancun, San Jose del Cabo, Loreto, Nuevo Leon, Monterrey, Guadalajara and Puerto Vallarta 5 . All sixteen of the projects designed to accomplish these developments have either started or will start no later than 2008. An additional two more expansion projects and a new airport plan (in Merida) are currently being studied 6 . Of the $5.5B in investment required by the aviation portion of the plan, over 45% is to come from the private sector and the remainder from the Mexican government. Import Market Mexico’s economy and population are both growing steadily. From 2002 to 2006, GDP grew by 6.5% annually and the population is currently around 104 million inhabitants 7 . Additionally, 40.5% of the population is under the age of 20. These socioeconomic demographics create, and will continue to create, additional consumers of aviation products and services with increasing money to spend. As well, Mexico City’s airport, which ranks 33 rd and 44 th in the world in number of annual flights and passengers respectively 8 , possesses great opportunities for many firms in aviation. As stated earlier, foreign companies sold aircraft and spacecraft products worth $127M to Mexico in 2006. Albeit large and significant, this is not the entire industry; in fact, it is merely one part. Both domestically made products and all aviation services are excluded from this figure, which are two very important categories that possess opportunity for anyone in aviation attempting to grow their business in Mexico. As such, further analysis is devoted to these vital sub-sectors below. Domestic Production In 2006, Mexico generated $305M in aviation export sales, 99.7% of which was sold to the United States 1 . As the “Market Demand” section stated, the U.S. exported $127M of such products to Mexico. Therefore, Mexico exports 2.4 times as much to the U.S. as the U.S exports to Mexico. Initially, it may appear that Mexico has a strong upper hand and that aviation in Mexico is a saturated marketplace. However, although these domestic producers are potential competition for a U.S. manufacturer of aviation goods, many of these firms operate at a different stage in the production cycle and never intend on selling to the Mexican market. Hence, Mexican aviation firms can be complementary to U.S. counterparts. Moreover, for those Mexican companies that do pose a threat, their businesses represent a sizeable market that is open to importation. No barrier exists to the customers to whom these Mexican firms sell; rather, current supply of more effective products from foreign counterparts does not meet demand. An additional Mexican manufacturing marvel that has thoroughly benefited U.S. exporters is the maquiladora industry, which is primarily along the U.S.-Mexico border. This business zone exemplifies how beneficial domestic manufacturers can be to foreign suppliers and it possesses numerous aviation manufacturers within it. In fact, maquiladoras demand $70B annually in production inputs, the majority of which comes from the United States. In 4 Programa Nacional de Infraestructura 2007 – 2012, “Visión de Largo Plano”. www.infraestructura.gob.mx. 5 Cruz, Lilian and Cordoba, Mayela. Reforma, “Planean 3 aeropuertos” (07/19/2007). 6 Programa Nacional de Infraestructura 2007 – 2012, “Anexos”. www.infraestructura.gob.mx. 7 World Bank, 2006 World Development Indicators. http://devdata.worldbank.org/wdi2006/contents/home.htm. 8 Air Transit World: World Airline Report (July 2007), “The World’s Top 50 Airports” pp. 50.
  • 4. Mexico: Aviation Industry Opportunities Page 4 of 8 Let us help you export. export.gov The U.S. Commercial Service — Your global business partner. 800-USA-TRADE addition, U.S. businesses have provided 57.4% of the investment in maquiladoras. Currently, around 56,000 American firms supply these Mexican manufacturers and still the numbers continue to grow. Passenger Services It is difficult to accurately quantify services in this sector with dollars; therefore, air traffic amongst passengers is used in this report to gauge both the size of the market and the trend in passenger services. This segment of aviation includes both commercial and privately charted services. The graph below (titled “Total Passenger Transported Domestically and Internationally”) shows the trend of growth and market size related to passenger services in Mexico (includes all airlines with operations in Mexico) 1 . In 2006, over 48 million passengers flew either to, from or within Mexico aboard one of the many airlines operating in the country. Since 1989, airlines have collectively shown steady growth; nevertheless, the more impressive growth of foreign firms in Mexico indicates a penetrable international market for providers of these services. Cargo Services Air cargo service providers, such as FedEx and DHL, have tremendous business operations in Mexico. The graph below depicts the trend and quantity of cargo (measured in U.S. tons) transported annually by Mexican and international carriers (and the total of both) 1 . Impressively, over 671 thousand tons of cargo was transported in, out or throughout Mexico last year by air. The percentage figures to the left show the strong average growth in this sector of aviation services since 1989. Foreign carriers maintain a majority share hold that appears to be increasing in strength. Total Passengers Transported Domestically and Internationally Commercial/Regular and Privately Chartered Operations - THOUSANDS - 5.8% 4.7% 8.3% Average Annual Change 29,807 27,830 26,40424,84624,05125,04825,76025,473 23,40422,128 20,07020,100 23,949 20,692 19,998 17,667 15,659 13,733 18,91818,280 17,119 14,43013,20513,23413,65212,36111,83310,72710,2268,5208,8187,8836,9456,4754,8314,843 48,725 46,110 43,523 39,276 37,25638,28239,41237,834 35,237 32,85532,767 28,574 20,490 18,576 26,943 24,142 28,620 30,296 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Mexican Carriers Foreign Carriers TOTAL Total Cargo Transported Domestically and Internationally Commercial/Regular Operations and Privately Chartered Operations - TONS - 8.2% 6.9% 9.3% Average Annual Change 276,573294,584 256,563 215,033223,66688,427 104,528 117,861 122,204 117,718 126,591 169,685 154,194 192,152 201,385 217,042 195,206 196,600 394,551 366,543 362,387 332,821 314,485 106,79981,31076,22486,552 157,335 183,859 317,042320,194 244,163 189,601 151,757 309,597 358,230 671,125661,127 618,950 547,854538,151 174,980180,751 199,171 229,003 275,053 310,450 305,952 359,286 436,315 521,579 534,084 553,436 506,197 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Mexican Carriers Foreign Carriers TOTAL
  • 5. Mexico: Aviation Industry Opportunities Page 5 of 8 Let us help you export. export.gov The U.S. Commercial Service — Your global business partner. 800-USA-TRADE Competition The two principal Mexican airlines that serve as the primary competition amongst Mexican firms are Aeromexico and Mexicana (formally Aerovias de Mexico and Mexicana de Aviacion). These airlines generated around $3.3B in operating revenue during 2006, transporting customers both domestically and abroad 9 . And Aeromexico and Mexicana handedly dominate the market in comparison to other Mexican Airlines in regards to international flight services, carrying 95% of passengers flying internationally on a Mexican-based airline 3 . However, such a stronghold in international travel is not the case against foreign competition. In the first quarter of 2007, the other 53 airlines servicing international flights (i.e. excluding Aeromexico and Mexicana) carried 77.5% of passengers 3 . Over half of the carriers providing international flight service in Mexico are neither American nor Mexican; yet, U.S. firms carried just fewer than 60% of passengers flying internationally during the first quarter of 2007 3 . Below are two tables that contain the airlines operating in Mexico during the first quarter of 2007 3 . Total passengers carried during this three-month period determine the order, from greatest to smallest, in which the airlines are listed. Firms that are neither Mexican nor American are highlighted in yellow. The first table contains solely international airlines and in the following are only Mexican airlines. 9 Air Transit World: World Airline Report (July 2007), “World Airline Financial Results 2006” pp. 39-42. COMMERCIAL 2007 PASSENGERS TRANSPORTED BY FOREIGN CARRIERS Firm Jan Feb Mar Total AMERICAN AIRLINES 250,480 224,109 274,786 749,375 CONTINENTAL AIRLINES 162,769 153,572 191,782 508,123 ALASKA AIRLINES 145,848 138,938 159,673 444,459 DELTA AIRLINES 144,903 126,279 146,894 418,076 EXPRESS JET 105,102 93,348 107,030 305,480 NORTHWEST 65,335 90,342 128,714 284,391 UNITED AIRLINES 89,133 79,645 95,928 264,706 AMERICA WEST 62,641 59,200 72,367 194,208 FRONTIER 59,877 55,606 74,402 189,885 AIR TRANSAT 64,991 59,625 61,551 186,167 US AIR 55,935 51,536 62,066 169,537 AIR CANADA 54,273 52,958 58,649 165,880 MN AIRLINES 25,064 32,015 44,022 101,101 IBERIA 25,009 20,038 30,598 75,645 AIR FRANCE 24,687 22,523 27,668 74,878 CIA. PANAMEÑA DE AVIACION 23,596 20,822 23,538 67,956 AMERICAN EAGLE 23,336 17,835 21,125 62,296 ATLANTIC 19,107 19,270 22,744 61,121 LUFTHANSA 20,274 18,262 20,109 58,645 SPIRIT AIRLINES 11,552 16,014 20,046 47,612 K L M 15,519 13,421 15,762 44,702 BRENDA USA 3000 11,239 13,855 18,560 43,654 LAN CHILE AIRLINES 14,309 12,936 12,795 40,040 COURSE AIR 10,629 10,800 12,258 33,687 JET BLUE AIR 8,042 8,361 17,236 33,639 MARTIN AIR HOLLAND 12,094 9,465 10,185 31,744 MESA AIRLINES 10,652 9,871 11,214 31,737 AIR ESPAÑA 11,113 10,220 9,715 31,048 AMERICAN TRANS AIR 10,600 8,127 11,410 30,137 CUBANA DE AVIACION 10,795 8,187 10,396 29,378 IBERWORLD 8,270 8459 11,659 28,388 BRITISH AIRWAYS 8,664 7,137 9,030 24,831 LTU LUFTHANSPORT UNTER 7,232 6,653 7,425 21,310 LIVINGSTON SpA 7,001 6,999 7,224 21,224 AVIANCA 7,713 5,481 7,994 21,188 LACSA 6,023 5,530 6,425 17,978 TACA INTERNACIONAL 6,361 5,454 5,679 17,494 AVIATECA 4,811 4,140 6,554 15,505 JAPAN AIRLINES 5,942 3,617 5,545 15,104 STAR AIRLINES 4,252 4,177 4,907 13,336 LANPERU 4,206 4,213 4,082 12,501 AEROLINEAS ARGENTINAS 2,921 3,687 4,456 11,064 LLOYD AEREO BOLIVIANO 3,333 2,370 1,108 6,811 CHAMPION AIR 2,126 1,899 2,358 6,383 VOLARE 1,231 994 1043 3,268 AUSTRIAN 551 755 452 1,758 T o t a l 1,629,541 1,528,745 1,859,164 5,017,450
  • 6. Mexico: Aviation Industry Opportunities Page 6 of 8 Let us help you export. export.gov The U.S. Commercial Service — Your global business partner. 800-USA-TRADE The additional table below shows the main providers of domestic service 3 , as these are potential clients to U.S. firms that provide goods and services to the airline industry. Airlines in Mexico, just like anywhere else, pose opportunity for the businesses that maintain and upgrade each airline regardless of nationality. End Users Opportunities are available in every aspect of the aviation industry. As this report demonstrates, trends in the Mexican aviation market are overwhelmingly upward. When the major contributors to the aviation industry (i.e. airlines, airports, etc.) grow, so do those smaller to mid-sized firms that supply the inputs to these larger industry contributors. From the smallest of aircraft parts to the maintenance of jet engines to the provision of flight services, U.S. aviation exporters can provide much to Mexico. Even in the face of a growing Mexican aviation industry, which often exports to the U.S., arises an opportunity. For instance, a great amount of foreign direct investment has benefited aerospace manufacturing in Mexico. FDI finds its way to Mexico in large part due to its proximity to a sizable purchaser – the United States. In fact, last year Mexico exported $500M in aerospace products according to the Secretariat of Economy - $178M of which went to the U.S 10 . Yet, the 125 firms that employ 16,500 workers in Mexico’s aerospace industry are not necessarily competing exporters; rather, they are firms potentially in need of U.S. products and services that will contribute to the final aerospace goods. Large companies like Bombardier (the third largest airplane manufacturer in the world) and Honeywell respectively produce fuselages and heat exchanges in Mexico 10 and these manufacturers are not going anywhere soon. For instance, Bombardier plans to invest $200M in their Mexico operations by 2016 10 . And a number of companies, with intentions similar to Bombardier, have recently published plans to operate in Mexico, including but not limited to: Ellison Surface Technologies (Queretaro); Daher (Nogales, Sonora); Airpas Aviation AG (Puebla); Hawker Beechcraft – HBC (Chihuahua); and Industrias Michelin 10 Poder y Negocios (07/03/2007), “Querétero aeroespacial” pp. 54-60. COMMERCIAL 2007 PASSENGERS TRANSPORTED BY MEXICAN CARRIERS FOR DOMESTIC SERVICE Firm Jan Feb Mar Total AEROVIAS DE MEXICO 437,019 429,089 504,675 1,370,783 MEXICANA DE AVIACION 311,402 293,175 398,594 1,003,171 AVIACSA 284,773 254,855 304,141 843,769 AEROVIAS CARIBE 115,818 127,596 164,833 408,247 VUELA 93,086 100,053 140,799 333,938 AEROLITORAL 95,793 97,627 119,084 312,504 ABC AEROLINEAS 96,440 81,586 111,393 289,419 AEROCALIFORNIA 77,654 85,355 102630 265,639 AVOLAR 71,119 62,946 70,572 204,637 AEROENLACES 59,961 53,302 86,742 200,005 GRUPO AEREO MONTERREY 53,613 47,538 50,777 151,928 AEROLINEAS MESOAMERICANAS 47,740 40948 61,484 150,172 AEROMAR 39,808 36,973 47,289 124,070 LINEAS AEREAS AZTECA 70,803 42,770 0 113,573 T o t a l 1,855,029 1,753,813 2,163,013 5,771,855 COMMERCIAL 2007 PASSENGERS TRANSPORTED BY MEXICAN CARRIERS FOR INTERNATIONAL SERVICE Firm Jan Feb Mar Total MEXICANA DE AVIACION 353,962 265,428 347,091 966,481 AEROVIAS DE MEXICO 188,972 143,589 176,185 508,746 AVIACSA 12,259 10,118 10,582 32,959 AEROVIAS CARIBE 10,824 7,454 8,515 26,793 AEROLITORAL 4,567 3,608 4,096 12,271 AEROMAR 0 0 64 64 LINEAS AEREAS AZTECA 0 19 0 19 AEROCALIFORNIA 0 0 0 0 T o t a l 570,584 430,216 546,533 1,547,333
  • 7. Mexico: Aviation Industry Opportunities Page 7 of 8 Let us help you export. export.gov The U.S. Commercial Service — Your global business partner. 800-USA-TRADE (Queretaro). That said, a long-term relationship could be built with such a firm, which would most likely prove very lucrative to any U.S. firm possessing something that any of these multi-million dollar operations require. Market Entry NAFTA provides free trade for nearly all products and services between the U.S. and Mexico, and exporting any of the products and services mentioned in this report are no exception. The best way for American firms to enter the Mexican market is to initially identify which type of clients they are pursuing. This client may be a stable, experienced Mexican firm that supplies aviation products and/or services or it might simply be an individual consumer of the aviation product/service offered by the U.S. firm. In either scenario, a distributor, partner or buyer within Mexico must be located; however, the latter of the two clients (i.e. individual consumer) necessitates a greater need for a Mexico contact. Aviation services, for example, have certain business requirements, such as advertising, which cannot be done nearly as successfully without a solid Mexican counterpart. To supply throughout the country, more than one local distributor may be needed. Also, manufacturers in Mexico will expect product warrantees and technical support. The U.S. Commercial Service can assist in initiating this relationship. Our knowledgeable, experienced staff has the connections and market know-how to assist in this often-difficult process of entering a foreign country’s import market. Our offices in Mexico are located in Mexico City, Monterrey, Guadalajara and Tijuana. We provide numerous services to assist our U.S. clients, such as investigating potential partners and the current market environment, overcoming governmental impediments through advocacy, and scheduling meetings between the U.S. exporter and possible Mexican purchasers and distributors of the service/product at hand. For more information on opportunities in this industry please contact Commercial Specialist Silvia Cardenas by email at Silvia.Cardenas@mail.doc.gov or phone at (52-55) 5140-2670. Key Industry Contacts Secretariat of Communications and Transportation http://www.sct.gob.mx The National Infrastructure Plan http://www.infraestructuta.gob.mx Airports of Mexico Informational Website http://www.aeropuertosmexico.com Aeropuertos y Servicios Auxiliares (ASA) http://www.asa.gob.mx Pacific Airport Group (GAP) http://www.aeropuertosgap.com.mx Upcoming Trade Shows and Events International Aviation Trade Show and Convention (2008/2009) http://www.aeroexpo.com.mx/index.html CIAM International Trade Show (2008) http://www.expo-ciam.com Mexican Business Aviation Exposition (March 12-14, 2008) http://www.expombae.com
  • 8. Mexico: Aviation Industry Opportunities Page 8 of 8 Let us help you export. export.gov The U.S. Commercial Service — Your global business partner. 800-USA-TRADE For More Information The U.S. Commercial Service in Mexico City can be contacted via e-mail at: Silvia.Cardenas@mail.doc.gov; Phone: (52-55) 5140-2670; Fax: (52-55) 5566-1115 or visit our website: www.buyusa.gov/mexico. The U.S. Commercial Service – Your Global Business Partner With its network of offices across the United States and in more than 80 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://www.export.gov/. Comments and Suggestions: We welcome your comments and suggestions regarding this market research. You can e-mail us your comments/suggestions to: Customer.Care@mail.doc.gov. Please include the name of the applicable market research in your e-mail. We greatly appreciate your feedback. Disclaimer: The information provided in this report is intended to be of assistance to U.S. exporters. While we make every effort to ensure its accuracy, neither the United States government nor any of its employees make any representation as to the accuracy or completeness of information in this or any other United States government document. Readers are advised to independently verify any information prior to reliance thereon. The information provided in this report does not constitute legal advice. International copyright, U.S. Department of Commerce, 2006. All rights reserved outside of the United States.