Business Context and Reporting Period
This Form 6-K filing by Central North Airport Group (OMA) covers the period of October 2007, specifically dated October 5, 2007. OMA operates 13 international airports across nine states in central and northern Mexico, serving major metropolitan areas like Monterrey and tourist destinations including Acapulco and Mazatlán. The company is listed on the Mexican Stock Exchange and the NASDAQ Global Select Market.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, or debt figures for the reporting period. However, it includes the following comparative financial data regarding the industry and the company's performance:
- Investment: The three Mexican Airport Groups (OMA, ASUR, GAP) invested over Ps. 7 billion pesos between 2000 and 2006 in runways, platforms, terminals, and security systems.
- Profitability: Approximately 30% of the concessioned airports operated by the groups are unprofitable.
- Return on Capital: Using the Federal Competition Commission's (CFC) methodology, the Airport Groups' return on capital ranges between 3.5% and 5.7%, compared to an average of 10.9% for the 50 airports analyzed by the CFC.
- Tariffs: Domestic passenger tariffs are on average 29% below those for international passengers.
Material Changes and Operational Context
The primary material event is the joint response by OMA, ASUR, and GAP to a report issued by the Federal Competition Commission (CFC) regarding competitive issues in the Mexican airport system. The Airport Groups dispute the CFC's findings, asserting that:
- Mexican airport tariffs are at the international average, not among the highest globally.
- Regulated rates have fallen in inflation-adjusted terms during the 2000-2006 period despite significant investment.
- The air transport industry has grown significantly, absorbing a 28% increase in domestic traffic between 2002 and 2006, with over 20% growth expected for 2007.
Guidance, Outlook, and Risks
Management Commentary: Management emphasizes a commitment to national development and strict adherence to Mexican laws. They argue that the current regulatory framework has not hindered industry growth. The groups expressed willingness to work with authorities to identify areas for improvement in competitiveness and efficiency.
Risks and Contingencies: The filing highlights regulatory risk stemming from the CFC's report on airport tariffs and competition. The Airport Groups contend that the CFC's analysis contains inconsistencies, such as comparing subsidized public airports with privately invested ones and using different earnings metrics (pre-tax vs. post-tax) for comparison.
Key Facts for Investor Verification
- Verify the specific impact of the CFC report on future regulatory tariffs and concession terms.
- Confirm the accuracy of the 3.5% to 5.7% return on capital figure relative to the company's internal financial statements.
- Monitor the status of the 30% of airports identified as unprofitable and the capital required to maintain them.
- Assess the validity of the CFC's comparison methodology regarding purchasing power parity and economies of scale.