The Mexican government is trying to distance itself from the management of Cintra, the holding company for Aeromex-ico and Mexicana Airlines, even though plans for a sale of Cintra shares, including those owned by the government, have been delayed.
The federal government has decided to transfer its 10 per cent stake in Cintra and its seat on Cintra's board of directors from the Communications and Transport Ministry (SCT) to the Finance Ministry. Aaron Dychter, SCT undersecretary for transport, explains: 'The government has no reason to be the airline's partner; our role is that of the authority as a regulator.'
The SCT's presence on Cintra's board, coupled with its financial stakes in Mexico's two biggest airlines, has come under fire from such smaller carriers as Aero-California, which claims Cintra has used its close links with government regulators to gain anti-competitive advantage.
Earlier this year Dychter said the government hoped to sell its stake when Cintra made its planned IPO. But the date for that offering has slid due to poor market conditions.
Part of the reason for that has been Cintra's poor first quarter performance compared to a year earlier. Cintra is not considered a good buy.
Aside from the federal government's 10 per cent stake, the Federal Development Bank Nafin holds another five per cent, and Fobaproa, the Bank Savings Protection Fund, has been holding 43.7 per cent of Cintra's shares since it took over several troubled loans from local banks. Fobaproa and the federal government are studying possible ways to sell their respective shares even if Cintra further delays its own offering.
Source: Airline Business
