BergerWorld: 4th Quarter 2006

Airport development in Mexico has been a priority for a number of years. In the mid-1990s, Berger was selected to evaluate 57 airports throughout the country to assess rehabilitation requirements and long-term expansion and investment needs. Berger also reviewed privatization bids for 34 airports to determine if the bids met government needs and requirements as well as international standards.

In 2005, Mexico welcomed more than 22 million tourists, generating over $11 billion of income. To ensure that the tourism sector of Mexico's economy remains vibrant, the Berger Group, in association with Felipe Ochoa y Asocados, S.C. (FOA), was retained by Aeropuertos del Sureste (ASUR) to update the master plans for nine airports in Cancun, Merida, Cozumel, Villahermosa, Veracruz, Oaxaca, Bahias de Huatulco, Tapachula and Minatitlan. The nine airports accommodated more than 13 million passengers in 2005, over half of Mexico's entire tourist market.

The Berger team reviewed facilities, analyzed operations and procedures, conducted detailed user surveys to evaluate passenger satisfaction and recommended improvements to enhance service standards. The Team also evaluated current capacity at each airport, prepared passenger and cargo forecasts and recommended necessary upgrades to meet future demand. Based on Berger's studies, updated master plans for the nine airports were prepared and provided to ASUR. The plans included detailed descriptions of each airport's current capacity and service levels as well as recommendations for upgrading the facilities, including an evaluation of options, project descriptions, cost estimates and implementation schedules. The master plans also included an assessment of environmental conditions and impacts.

Grupo Aeroportuario del Centro Norte (OMA) operates 13 international airports in the north and central regions of Mexico. OMA's airports serve Monterrey, Acapulco, Mazatlan, Zihuatanejo, Durango, Chihuahua, Ciudad Juarez, Culiacan, Reynosa, San Luis, Tampico, Torreon and Zacatecas. In 2005, OMA accommodated more than 10 million passengers, nearly nine percent more than in 2004. To keep up with Mexico's rapidly growing aviation industry, the Berger Group, in association with FOA, was retained by OMA to assist in the updating of master plans for the 13 airports.

With FOA, Berger developed a comprehensive questionnaire to obtain background information for the development of the master plans. The questionnaire was then presented to airline authorities, passengers, hotel/tourism representatives as well as other major stakeholders. The Team also reviewed current demand and capacity, prepared traffic forecasts, evaluated the quality of current operations and procedures, assessed existing facilities and identified investment needs. Finally, recommendations were prepared for each airport, including upgrades to terminals, cargo handling facilities, runways and on-site parking, ensuring that all 13 airports operate in the most efficient manner.

To further increase efficiency and competitiveness at two airports in Mexico, the Berger Group was retained by the Operadora Estatal de Aeropuertos (OEA) at Puebla International Airport and the Aeropuertos y Servicios Auxiliares (ASA) at Ciudad Obregon International Airport to plan for the modernization of the airports, including upgrades of the passenger terminals and runways as well as the development of new cargo facilities. Berger conducted technical, economic, financial and environmental feasibility studies; identified alternate improvements; and prepared recommendations for the expansion and modernization of the two airports. The Team reviewed existing data and engaged in discussions with key local agencies, government officials and stakeholders to better identify the needs of each airport for the next 20 years. Forecasts of passenger and cargo demand were prepared and the current conditions of the facilities were assessed to determine whether future demand could be accommodated. At Puebla International Airport, Berger conducted a number of environmental impact reviews, including an assessment of Popocatépetl Volcano to identify areas at risk from ash falls and lava flows, establish safety zones around the volcano and implement evacuation plans in the event of an eruption. The Team also prepared financial plans to identify investment needs at the different stages of development, and documented the expected contributions from the federal and state governments, as well as private-sector investors. Finally, Berger staff delivered detailed reports of their findings to Puebla and Ciudad International Airport officials, national and international airport operators, current investors and other financial institutions interested in participating in the projects.