Prohibiting cargo in the AICM puts competition at risk: Cofece

Do not let (the current government) a matter relevant to the aeronautical authority be resolved in court, get together with experts in economic competition to rework the project “

Eduardo Sánchez, former legal director of SCT.

Antitrust regulation is the other challenge in the process of closing operations to the airlines that offer the exclusive cargo service at the Mexico City International Airport (AICM).

This Thursday, the Federal Economic Competition Commission (Cofece) warned that the draft Presidential decree that seeks to alleviate with said measure the operational saturation of the capital airport “presents risks in terms of competition and free competition in the national air transport market” and that in the event that this occurs, a public policy must be implemented beforehand to improve the infrastructure and logistical conditions for cargo handling in other airport facilities.

As long as such a policy does not exist, it recommends not prohibiting the national and international public air cargo transport service from the AICM, without detriment to the safety of air operations and the integrity of current users.

In addition, it asks not to speed up the procedures before the National Commission for Regulatory Improvement (Conamer) and to adhere to the term established in the current regulations, at least 20 days, with which the application of minimum consultation periods that is in force must be set aside. march (in a maximum of 10 days).

In a comment from Cofece it is mentioned that the proposed decree obliges concessionaires and permit holders to modify their supply chains, which would be reflected, at least temporarily, in higher final prices for consumers or a reduction in product supply.

“There are products whose only option to be imported, in case an airport is required, is through customs located in the AICM (such as radioactive and nuclear, chemical precursors, footwear, cigarettes or alcoholic beverages). Due to the above, the availability of these products would be reduced and prices would increase to the detriment of consumers, while another customs office is enabled at an airport to carry out this procedure,” the Commission explained.

The eventual monopolistic practice

Knowledgeable about the subject and with work experience of more than 15 years in the former Ministry of Communications and Transportation (SCT), the lawyer Gerardo Sánchez Henkel, affirmed that the aforementioned decree, which, clearly, seeks to bring the cargo activity to the Airport International Felipe Angeles (AIFA) “constitutes a clear absolute monopolistic practice punishable with up to 10% of the annual gross income” of the two terminals.

“I do not overlook the need to carry out an economic competition analysis as well, since it cannot be ignored that both the AICM and the AIFA belong to the same economic agent in the relevant market for airport services in the metropolitan area of ​​Mexico City” he wrote in a comment to Conamer.

The specialist in issues of competition, infrastructure and telecommunications (who in his resume states that his last position in the SCT was that of head of the Legal Affairs Unit in the administration of President Felipe Calderón), made a recommendation to the Federal Government:

Do yourself a favor, don’t let a matter relevant to the aeronautical authority be resolved in court, get together with experts in regulatory issues and economic competition to rework the project on solid legal and economic bases.

In an interview, Sánchez Henkel reiterated that the reading of the draft decree reveals omissions in its legal analysis that can lead to unnecessary lawsuits if what is currently provided by law is followed.

Regarding the eventual absolute monopolistic practice, he said that it would be carried out by the Mexican State as an economic agent, that is, the Federal Executive through two concessionaires that operate the airports, whose control is exercised through the dependencies to which they are sectored (Secretariat of National Defense and the Secretariat of Infrastructure, Communications and Transportation).

From their perspective, the proposed measure corresponds to some characteristics of the aforementioned practice, in accordance with the Federal Economic Competition Law: Dividing, distributing, assigning or imposing portions or segments of a current or potential market for goods and services, through clients, suppliers , determined or determinable times or spaces.

The lawyer also drew attention to the fact that approximately 90% of exclusive cargo operations are carried out at night (between 11:00 p.m. and 5:00 a.m.), at times that are not considered to be saturation levels. , so that the impact of the measure on the depressurization of air traffic during saturated hours would be minimal.

comments follow

• Within the process of regulatory improvement of the bill that would prohibit dedicated cargo operations in the AICM, the concerns of cargo operators about the scope of the measure continue to flow. Yesterday, positions of at least three companies were expressed:
• Cargolux Airlines International: The publication of the decree in question requires a detailed analysis in order to determine if it could be discriminatory with respect to combined cargo operators, while their participation in the market concentrated by the AICM would not be limited.
• More Cargo: The maximum term of 108 business days referred to in the fifth transitory article of the decree must be modified to a minimum of 180 business days, by virtue of the fact that as of today, work tables are being coordinated by the Airport Group of Mexico City.
• National Chamber of the Cosmetic Products Industry: It will be very helpful for logistics operators and foreign trade actors to know a list of customs and nearby airports that already have the necessary systems, equipment and conditions for international flights with merchandise.

alejandro.delarosa@eleconomista.mx