ASR - Mexican Airport Operator ASUR: Wide-Moat Business With Entry Opportunities On The Horizon
Commercial airport operators usually command a sustainable competitive advantage thanks to their monopolistic rights to operate, manage, and develop airports, the critical infrastructure that facilitates modern air travel. Such a monopoly is sanctioned by the government under long-term concessions. There is little direct competition among airports thanks to the distance between them. The government, as the ultimate owner of, and the earner of concession fees from, an airport, naturally prefers maintaining and expanding the existing facility to building a competing one nearby, thus erecting formidable barriers to entry and making the airport a toll booth-like