New Mexican President President Andres Manuel Lopez Obrador has scrapped a $13 billion new airport in Mexico City that the previous administration insisted was 1/3 completed. Partially completed structures remain throughout the property. The government may seek to create a public park out of part of the site.
As a result of cancelling the project, the government had to reach a settlement with the buyers of $6 billion worth of construction bonds intended to fund it. IATA estimates that the cancellation will cost $5 billion.
The decision to scrap the Texcoco project has drawn heavy criticism. IATA, which estimates that the cost of the cancellation will be more than $5bn, has called the situation “one of the biggest challenges for our industryâ€.
“We believe this will have significant impact on the economic growth of the country,†said Peter Cerda, IATA regional vice-president the Americas.
Observers reckon it will take years for the new airport system to be ready, leaving operators to struggle at Benito Juarez in the intervening years.
The only certainty is that air travel in and out Mexico City faces years of heavy delays and congestion.