Mexico: New COFECE ruling on Mexico City Airport ‘slots’

Mexico’s competition regulator, COFECE, has announced its resolution to consider the landing, take-off, use and control of platforms services at the International Airport of Mexico City (AICM) (collectively known as ‘slots’) to be essential resources. In addition, the agency criticized current rules on their allocation as leading to high market concentration, high prices and restrictions on the expansion of supply, affecting two-thirds of domestic passengers and a third of international travelers using this airport.

COFECE recommended a series of corrective measures to the AICM, including: allowing public verification of regulatory compliance by authorities and airlines to promote accountability; Defining clear rules regarding the criteria for assignment, return, withdrawal, cancellations and auctioning of available landing and takeoff slots; Clearly defining the causes that exempting airlines of responsibility in delays and cancellations beyond their control; and to prevent airlines that hold more than 35% of participation in a time slot from accumulating more slots.

“When these corrective measures are implemented, the airlines operating in the AICM will be able to fulfill their obligations toward end users regarding the time and form of the services engaged, which will reduce delays. It will also increase the possibility of entry and expansion for competitors in the market, which will promote a greater offer of flights and lower fares”, COFECE said in its press release.

Full Content: COFECE

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.