Investment in joint ventures accounted for under the equity method:

12 Months Ended

Dec. 31, 2018

Disclosure of joint ventures [abstract]

Disclosure of joint ventures [text block]

Note 9 - Investment in joint ventures accounted for under the equity method:

In 2013, the Company participated in a bidding process through its subsidiary, Aeropuerto de Cancún, S. A. de C. V. (Cancún) for a long-term lease agreement to operate and administer the LMM Airport located in San Juan, Puerto Rico.

The investment between Highstar Capital IV (Highstar) and Cancún Aiport, created Aerostar Airport Holdings, LLC (Aerostar). It was determined that operations of Aerostar constitute a Joint Venture. Aerostar signed a 40-year lease agreement to operate the LMM Airport. As part of the bidding terms, Aerostar made an initial payment of USD615 million (Ps7,846 million pesos approximately) to the Puerto Rico authorities. A portion of that payment was funded by a private placement of bonds by Aerostar in the amount of USD350 million (Ps4,471 million pesos approximately) in the same year of acquisition of the concession.

Nature of the investment

Aerostar is a limited liability company incorporated under the laws of Puerto Rico. It is mainly engaged in operating the facilities of the LMM Airport.

Aeropuerto de Cancún, S. A. de C. V. holds 60%

in the ownership interest of Aerostar

(50% until May 30, 2017) and the Public Sector Pension Investment Board “PSP Investments” own the other 40% (until May 26, 2017 owned by Highstar Capital IV in 50%). See Note 1.

Passenger Facility Charges (PFC)

The United States Congress of North America approved the “Aviation Safety and Capacity Expansion Act.” In which it authorizes United States airports to impose a Passenger Facility Charge (PFC). PFC can be used for airport projects that meet at least one of the following criteria: preserve or improve the security, protection or capacity of the national air transport system; reduce noise or mitigate noise resulting from an airport; or provide opportunities for increased competition between airlines. PFC revenues and accrued interest are restricted for use in capital projects approved by the FAA and are classified as restricted cash. See Note 5.1. For the period from June 1 to December 31, 2017, and the year ended December 31, 2018, revenues collected by PFC were Ps191,356 and Ps329,532, respectively.

As of June 1, 2017, Aerostar consolidates its shareholding as a subsidiary in the Company, increasing its shareholding from 50% to 60%, for which the recognition as a joint venture is until May 26, 2017.

CONDENSED STATEMENT OF FINANCIAL POSITION

	December 31,			May 26,
	2016			2017

Cash and cash equivalents	Ps	719,254		Ps	543,242
Restricted cash and cash equivalents		21,044			16,989
Other current assets		201,992			142,410

Current assets		942,290			702,641

Financial liabilities		(92,367	)
Other current liabilities		(615,709	)		(647,896	)

Current liabilities		(708,076	)		(647,896	)

Working capital		234,214			54,745

Land, furniture and equipment		152,758			135,373
Intangible assets, airport concessions - Net		14,661,436			13,254,582
Other non-current assets		571			556

Non-current assets		14,814,765			13,390,511

Long-term debt		(7,693,682	)		(6,824,310	)
Loan payable to the Company		(1,886,546	)		(1,430,310	)
Other non-current liabilities		(265,040	)		(286,325	)
Deferred taxes – Net		(225,107	)		(203,502	)

Non-current liabilities		(10,070,375	)		(8,744,447	)

Stockholders’ equity	Ps	4,978,604		Ps	4,700,809

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

	For the			Period from
	year ended			January 1,
	December 31,			to May 26,

	2016			2017

Total revenue	Ps	2,526,371		Ps	1,170,888
Operating costs and expenses		(1,650,890	)		(694,435	)
Comprehensive financing loss - Net		(535,053	)		(229,789	)
Deferred income taxes		(51,931	)		(21,974	)

Net income for the period		288,497			224,690
Effect for foreign currency conversion		800,692			(475,233	)

Comprehensive income (loss)	Ps	1,089,189		Ps	(250,543	)

Reconciliation of condensed financial information

	December 31 ,			May 26,
	2016			2017

Initial capital contribution to Aerostar	Ps	3,016,003		Ps	3,016,003
Accumulated (deficit) earnings		(112,162	)		176,335
Net income for the period		288,497			224,690
Other accumulated comprehensive income		985,574			1,786,266
Other comprehensive income (loss)		800,692			(502,485	)

Net assets at period closing		4,978,604			4,700,809

Equity percentage in joint business		50	%		50	%

Carrying value	Ps	2,489,302		Ps	2,350,405

				From January 1 st
	December 31,			to May 26,
	2016			2017

Net income for the period	Ps	288,497		Ps	224,690
Equity percentage in joint venture		50	%		50	%

Equity method income	Ps	144,248		Ps	112,345