Mexican Airport Stocks Plunge After AMLO Unilaterally Cuts Fees
-
Mexican airport operators' stocks plunged after the government unilaterally changed fee structures without notice.
-
President AMLO has made bold moves before that worried investors about rule of law, like canceling an airport project.
-
Airport operators earn revenue from passenger fees, retail businesses, and airline charges. Critics say the fees are very high.
-
AMLO linked high airport profits to serving the minority over people. Operators' profit margins are 50-60%.
-
Investors worried AMLO's airport fee move signals he won't be a lame duck in his last year, pressing infrastructure plans.