Mud at the gate. (Out of the Box).

The Mexican government's ambitious US$4 billion privatization plan in 2002 calls for the sale of some major transportation assets, including an initial public offering of its remaining shares in 12 airports, which include export and tourist facilities in Guadalajara, Hermosillo, Mexicali and Tijuana.

The government has awarded Credit Suisse First Boston and local brokerage GBM the mandate to sell its 85% of the shares in Grupo Aeroportuario del Pacifico, but the stock offering expected to fetch about $500 million is almost a year behind schedule.

In addition, privately owned airports have taken flak from airlines for excessive fees and from consumers for poor conditions--Jalisco state Governor Francisco Ramirez Acuna last year even called Guadalajara's airport a "porqueria," or rubbish.

Grupo Aeroportuario del Sureste (Asur), another private airport operator, has not faced stinging criticism for airport conditions, but it has been hit with lawsuits. Three Mexican-based airlines, filed a lawsuit against the Ministry of Communications and Transport (SCT) requesting that certain tariffs charged by Asur in the second quarter of last year be declared void.

The privatization of Mexico's top two airline carriers, Aeromexico and Mexicana de Aviacion, remains in a holding pattern due to the global airline industry crisis.