Ferrovial commences the management of nine airports in Southeast Mexico Ferrovial has started to manage nine airports in Southeast Mexico, after acquiring a 15 % stake in the public sector concessionaire company of the nine airports, for an amount aggregating 18,000 million pesetas ($ 166 million). Ferrovial- through Cintra- has taken on a significant role in the management of these nine airports (namely, Cancun, Merida and another seven airports) and is already in charge of their operational management. Ferrovial, together with Airports of Copenhagen, Tribasa and GTM, will manage the nine airports during the next 15 years. This period may be extended. Amongst the tasks assumed by Ferrovial, one could point out, as well, the co-ordination of the implementation of the Directive Plans with reference to the nine airports assigned; the drawing up of a Marketing Plan to attract air traffic to these airports; the Training Plan for Executives and the methodology to be used to implement the new tariff system, which will include the carrying out of presentations and discussions with airlines. Investment and advisory services The consortium will invest, in the next few years, approximately 30,000 million pesetas ($ 200 million) in airport infrastructures, in increasing the capacity of terminal buildings, in several commercial plans and in the improvement of the quality of services offered to clients. Ferrovial and its partners will advise the Mexican Government until the full privatisation of these airports is complete. This will be carried by means of a Public Sale Offer (PSO) of shares in which the managements position, as well as that of the consortium that has been awarded the contract, will be preserved. They will take part, in this way, in the management and adoption of business decisions. This will allow them to give a further push to the activity of these airports; and to advise on the placement of the remaining 85 % stake in national and international stock markets. Traffic & revenue growth The Sureste group comprises nine airports- namely, Cancun. Merida, Veracruz, Villahermosa, Guaxaca Huatulco, Tapachula and Cozurmel- with traffic, in 1998, exceeding 10 million passengers. During the first three months of 1999, this group of airports recorded an average traffic growth of 12 %, compared to the same period in 1998. Cancun Airport, which absorbs six million passengers per annum, increased its traffic by 15 %. Revenue, in the years first quarter, grew by 30 %, aggregating 3,100 million pesetas. Ferrovial and its partners expect these results to improve as a result of applying a management philosophy which focus on increasing commercial revenue which, at present, is less than 7 % total revenue for the airports taken as a whole. Cintras new reinforcements The Southeast Mexican project has implied Ferrovials incursion in airport management. It will be followed by future investments in other international airports and completes the activities in highway and parking lots in which it takes part, via Cintra, in Spain, Latin America and North America. After obtaining this new contract and with a view to continuing the development of this business area, given the opportunities that present themselves in the airport market, Cintras Airport Division has been reinforced with the hiring of experts from the private airport sector.