Grupo Aeroportuario del Sureste, S.A.B. de C.V. Q3 2008 Earnings Call Transcript

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2008-10-24 11:52:10.0

Tags: Call Transcript, Land, Earnings, UBS AG, Government, Vertical Industries, Corporate Governance, Enterprise Software, Software, Business Operations, Corporate Law, Seeking Alpha, Call Transcript, Land, Earnings, UBS AG, Government, Vertical Industries, Corporate Governance, Enterprise Software, Software, Business Operations, Corporate Law, Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions). The first question comes from the line of Thomas Löffler from UBS. Please proceed.

Thomas Löffler - UBS

Yeah. Hi, good morning Adolfo, thank you for the call. One question related to the Huatulco investment. Why did ASUR buy the land instead of a developer buying the land directly from FONATUR? Were there no other bids in the bidding process or why do you believe that ASUR has to organize the land for this project?

Adolfo Castro Rivas

Hi good morning Thomas. In the case of this particular piece of land the bid was open and apparently, no one of the bidders complied with the requirements from FONATUR, and that's why ASUR's Board of Directors decided to go ahead with our proposal -- which we may -- down there [ph] on the 12th of September.

Thomas Löffler - UBS

So it's that they didn't meet the requirements or that they weren't bidding for the land? It's that they didn't meet the requirements, right?

Adolfo Castro Rivas

Yeah, the second one, yes.

Thomas Löffler - UBS

Okay. Thank you very much.

Operator

And our next question comes from the line of Nick Sebrell from Morgan Stanley. Please proceed.

Nick Sebrell – Morgan Stanley

Hi, Adolfo. Two questions first. Could you talk a little bit about CapEx outlook for next year -- what are the major projects aside from finishing the second runway? Second, if you could add a little bit of detail to the Huatulco outlook? In other words, this is the five year development plan, what's the potential size of the airport, what's the connectivity to the US and maybe -- like that stuff. And then just a data point, what's the European share of international traffic, now traffic coming from Europe?

Adolfo Castro Rivas

Okay, Nick good morning. Major projects -- I cannot say, what are we going to do next year, because currently we are in negotiations with the government. We have proposed -- we had presented our proposal on December 24th last year. And we don't know if they're going to consider our proposal or not. So for the moment I cannot tell you exactly what are we going to do next year.

In the case of the Huatulco, Huatulco is a complete -- a full tourist destination that has 3,600 around 38,600 hotel rooms and for many years it has been packed because the government didn't open spaces for hotel rooms' construction.

 

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