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16.781 Planning and Design of Airport Systems. Planning for a New International Hub in Mexico City Alvaro Covarrubias December 10 th , 2002. Outline. Air market between North America and Central/South America. Competitive analysis of different hubs.

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slide1

16.781 Planning and Design of Airport Systems

Planning for a New International Hub in Mexico City

Alvaro Covarrubias

December 10th, 2002

slide2

Outline

  • 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.
slide3

JFK

LAX

ATL

EWR

MIA

IAH

DFW

Source: OAG (2001)

Air Market - Airports

Available Seats to Central and South America

For historical, cultural and geographic reasons, Miami is the main

gateway for traffic from Central and South America.

slide4

AEROLINEAS

OTHER

ARGENTINAS

INDEPENDENT

AA

COPA

CONTINENTAL

SUMMA

DELTA

LAN

VARIG

TACA

IBERIA

TAM

Source: OAG (2001)

UNITED

Air Market - Airlines

Available Seats to Central and South America

As MIA is a hub for AA, the airline and its partners dominates the traffic between the two regions.

slide5

Source: OAG (2001)

Air Market – Main Destination in Central/South America

Although Central America represents almost 45% of the AS…

slide6

Source: OAG (2001)

Air Market – Main Destination in Central/South America

It only represents a 20% of the ASM.

The business is in South America.

slide7

Competitive Analysis – Geographic Location

Evaluate the geographic suitability of

hubs, for traffic between the 13 airports

with more ASM from US gateways…

slide8

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.

slide9

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.
slide10

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.
slide12

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.
slide13
Thank you for your attention!

Alvaro Covarrubias

alvaroc@mit.edu