Last week, Grupo Aeroportuario del Centro Norte S.A. de C.V. (OMAB) announced a decrease of 12.4% in total passenger traffic for October, compared to the year-ago period.   Domestic passenger traffic decreased 11.6%, while international passenger traffic decreased 17% compared to October 2008.   The decline in domestic passenger traffic resulted mainly from the suspension of Aviacsa (suspended since July 6, 2009), the departure from the markets of Alma and Aladia, and a reduction in traffic on Interjet and Magnicharter. The Monterrey, Acapulco, and Ciudad Juarez airports also had the largest traffic reductions.   International traffic decreased principally because of the cancellation of international routes by Continental, Grupo Aeromexico, and Alaska Airlines, in addition to the suspension of Aviacsa. The Monterrey, Mazatlan, Acapulco, and San Luis Potosi airports were the most affected.   Airlines all over the world are facing difficulties, primarily due to the collapse of the ...

Last week, Grupo Aeroportuario del Pacifico, S.A.B. de C.V. (PAC) reported gloomy results for the third quarter ended September 30, 2009. During the quarter, revenues declined 4.8% year over year and reached MXN$40.2 million. The decrease was primarily due to the decrease in aeronautical revenues. Revenues from aeronautical services declined 5.8% and reached MXN$37.8 million, mainly as a result of a decline of MXN$42.4 million in passenger charges, which was offset by an increase in airplane landing fees and airplane parking fees. Non-aeronautical service declined 1.3% to MXN$2.3 million. Cost of services declined 22.4% to MXN$56.1 million; as a percentage of revenues, cost of services decreased 560 basis points. Per workload unit ("WLU"), cost of services declined MXN$6.1 million from MXN$44.3 million in the third quarter of 2008 to MXN$38.2 million in the third quarter of 2009. As a result of the decrease in total ...

Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASR) announced results for the three-month periods ended September 30, 2009. For the third quarter of 2009, total passenger traffic declined year-over-year by 13.86%. International passenger traffic declined 19.01% while domestic passenger traffic declined by 8.36%. On April 28, 2009 the World Health Organization announced the outbreak of the H1N1 Influenza in Mexico . As a result, total year-over-year passenger traffic declined 2.1% in April, 50.7% in May, 28.4% in June, 16.7% in July, 12.8% in August and 10.7% in September. The 19.01% decline in international passenger traffic resulted mainly from a decline of 20.23% in international traffic at the Cancun airport. The 8.36% decline in domestic passenger traffic resulted mainly from declines of 13.94%, 11.33%, 18.12%, 32.50% and 38.06% at the Merida , Veracruz , Villahermosa , Cozumel and Tapachula airports, respectively. Net income declined 27.01% to ...

Last week, Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASR) announced a decrease of 10.7% in total passenger traffic for September 2009 versus September 2008. Domestic passenger traffic decreased 11.0%, while international passenger traffic decreased 10.3% compared to September 2008. The decline in domestic passenger traffic resulted mainly from declines of 17.3%, 3.8%, 8.8%, 18.8% and 18.8% at the Merida , Cancun , Veracruz , Villahermosa and Cozumel airports, respectively. The decline in international passenger traffic resulted mainly from a decline of 11.0% in international traffic at the Cancun airport, main tourist attraction. Airlines all over the world are facing difficulties, primarily due to the collapse of the global economy. Declining business and leisure travel is affecting airlines' business to a larger extent. Moreover, the Mexican economy could face a tight money period in the upcoming quarters as the Bank of Mexico recently lowered ...

Starwood Hotels and Resorts Worldwide Inc. (HOT) signed 25 new deals and opened over 40 hotels in its North America Division in 2009. The company expects to open 20 more hotels by the end of this year. Globally, Starwood is on a voyage to open its 1000th hotel and resort.

Starwood's focus on developer-centric conversion has contributed to large scale hotel openings and new deal signings this year, which is in line with the company's strategy of long-term sustained growth in North America.

We believe the strength of Starwood's brands allow it to charge a premium for its hotel rooms. Given its property locations and strong brand recognition, we think that the company is well positioned to benefit from business travelers going to major North American destinations. Furthermore, as the demand environment improves, HOT should benefit from business travelers going to international locations as well.

Both business and leisure travel have

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Early last week, Mexican airport operator, Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (OMAB), reported terminal passenger traffic at its 13 airports during August 2009.  Total passenger traffic decreased 12.9% year over year in the month. Domestic traffic decreased 11.0%, and international traffic decreased 24.1%. However, total passenger traffic volumes decreased at a slower rate than during any prior month of the year. This effect is principally the result of the improvement in domestic traffic.  The performance of airlines such as VivaAerobus, Grupo Aeromexico, Aeromar, and Grupo Mexicana benefited domestic traffic. Three domestic routes were opened: Mexicana Link opened the Acapulco-Guadalajara and Guadalajara-Mazatlan-San Jose del Cabo routes on August 1, and Aeromexico Connect opened the Zacatecas-Mexico City route on August 11.  The Culiacan, Durango, and Mazatlan airports reported traffic growth of 15.7%, 23.2%, and 2.6% respectively. However, the overall volume of domestic traffic was ...

Marriott International Inc. (MAR) recently said it signed 21 management contracts for hotels and resorts in the Asia-Pacific region. These hotels, scheduled to open through the end of 2013, will add approximately 7,000 rooms to the company’s portfolio. The projects are lined up in China, India, Thailand, Vietnam, Philippines and Cambodia.

As a result of the expansion, Marriott’s Asia-Pacific portfolio will have 154 hotels offering 51,500 rooms in 18 countries by the end of 2013.

Both business and leisure travel have decreased significantly in the past two quarters due to the economic turmoil. Corporations across the globe have adopted stringent methods to curtail expenses and restricted business trips and retreats. As a result, hotel operators like Marriott and Starwood Hotels & Resorts Worldwide Inc. (HOT) were forced to depend on leisure travelers who are more vulnerable to price shifts. Thus, their balance sheets have been severely impacted.

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Last week, Grupo Aeroportuario del Pacifico S.A.B. de C.V. or GAP (PAC) announced preliminary terminal passenger traffic figures for August. Total terminal passengers fell 7.7% from the comparable period last year. Domestic passenger traffic decreased 3.8%, while international passenger traffic shrank 15.8% compared to August 2008.

Airlines all over the world are facing difficulties, primarily due to the collapse of the global economy. Declining business and leisure travel is affecting airlines' business to a larger extent.

Moreover, the Mexican economy should face a more challenging period in the coming quarters as the Bank of Mexico recently lowered its benchmark interest rate by just 25 basis points to 4.5%, reducing the scope for aggressive rate cuts. The Mexican economy is rapidly slowing down and the trend is likely to continue in the short term. Thus, it certainly would be a difficult year for PAC, Grupo Aeroportuario del Sureste S.A.

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On July 16, Bethesda, MD-based hotelier Marriott International (MAR) reported financial results for the second quarter of fiscal 2009. Total revenue was $2.6 billion, down 19.6% versus the prior year period. Marriott experienced worldwide declines in revenue per available room (RevPAR) across all its brands. RevPAR is a key metric for the lodging industry. Base management and franchise fees declined 19%, while incentive management fees were down 66% from the prior year. Owned, leased, corporate housing and other revenue decreased 54%, while adjusted timeshare sales and services revenue declined 24%. Worldwide comparable company-operated properties RevPAR decreased 26.1% (23.0% on a constant-dollar basis), while worldwide system-wide RevPAR fell 23.6% (21.4% on a constant-dollar basis). International company-operated RevPAR fell 31.5% (22.1% on a constant-dollar basis) including a 22.3% decline in average daily rate (11.6% using a constant-dollar basis). The results reflected the economic recession in addition to ...

Recently, major Mexican airlines companies reported a decrease in passenger traffic for the month of June.

Grupo Aeroportuario del Pacifico S.A.B. de C.V. (PAC) announced a 20.1% decline in total terminal passengers year-over-year, comprised of 17.5% decrease in domestic passengers and 25.4% drop in international passengers.

Grupo Aeroportuario del Sureste S.A.B. de C.V. (ASR) announced a fall of 28.4%, with 17.6% in the domestic sector and 36.7% in the international sector.

Grupo Aeroportuario del Centro Norte S.A.B. de C.V. (OMAB) reported a decrease of 20.5% in total passenger traffic, with domestic traffic down 18.4% and international traffic tumbling 32.3%.

Passenger traffic decreased not only in June, but throughout the second quarter of 2009. PAC’s passenger traffic was down 36.6% in May and 10.4% in April. ASR’s passenger traffic dropped 50.7% in May and 2.1% in April. OMAB reported a fall of 39.7% in May and 17.7%

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