I am very pleased to share with you the achievements of these past 15 years of operations, after we won the public tender as part of the Mexican government’s program of opening the nation’s airport system to private investment.
During these years, we have constantly created value for our shareholders, both as a result of our balanced airport portfolio and a series of strategic decisions that have not only consistently brought us positive results but strengthened our competitiveness and leadership in the industry.
One of the key factors in GAP’s success has been the leadership and contribution of Aeropuertos Mexicanos del Pacífico (AMP) to define the strategy to improve our performance. AMP’s involvement in GAP’s management has led to strong shareholder value creation since the IPO, and signing the CATT has created incentives for the strategic partner to be heavily involved in our success, as it has provided the technical know-how and managerial experience necessary to successfully manage the airports.
We have benefited from qualified management advice, qualified board members, security, safety, operational and administrative procedures, maintenance manuals and a customer satisfaction survey, operational, financial and safety IT systems, and expert advice on all matters related to airport operation. Going forward, the CATT will help enable GAP continue to make progress on key strategic projects and activities as it would continue to facilitate the seamless transfer of international airport expertise in key areas, as well as improving GAP’s access to needed technology and international best practices.
With management that has succeeded in combining aggressive growth in revenues with highly disciplined expense controls, we have attained a high level of operating efficiency in 2014, with an operating cost per passenger of MXP 112.5 and the highest EBITDA margin in the industry, currently at 70.1%. We also have the highest total revenues per passenger in the industry, and these grew by a substantial 43.4% between 2006 and 2014.
This constant value generation has resulted from a 52.2% increase in the number of passengers, a 115.4% rise in aeronautical revenues and, above all, commercial revenues, which went from 6.1% of the total revenue mix in 1999 to 25.4% at present, and have risen more than 100%. We achieved this through a strategic focus on various third-party operated businesses at our airports, and in directy operated businesses, which have experienced rapid growth, such as parking areas, advertising space, convenience stores and VIP lounges.
Another equally important factor has been our flexibility in adapting to unforeseeable events, like the failure of six airlines, the outbreak of the H1N1 virus in 2009 that took a heavy toll on passenger traffic, international economic crises and the grounding of Mexicana Airlines in mid-2010, which had accounted for a high percentage of our revenues. But even in those years, we continued to grow our EBITDA and maintained a high level of efficiency, which was reflected in our margins.
As part of the concession commitment, we present a Master Development Plan every five years, and in fully meeting the terms of each of these, we have gradually transformed our airports. The initial investment cycle focused on guaranteeing operating safety, increasing aeronautical revenues and cutting costs. The second step was to invest heavily in the terminals to adjust them to the volume of passengers and improve our service and quality levels. In more recent years, we have turned our attention with considerable success to the commercial business and to continuing to create more spacious, comfortable areas consistent with the projected growth in traffic in our airports.
The investment plan for this fourth period—MXP 5.5 billion—is the largest of the three airport concession groups in Mexico, and is more than 60% higher than the amount committed in the previous five-year plan. This investment will enable us to increase our capacity to handle international operations and thus position ourselves better to continue capturing demand, particularly in the Guadalajara, Tijuana and Los Cabos airports.
To finance this ambitious investment program, we placed MXP 2.6 billion in bonds, with a bid-to-cover ratio of almost three times and rates that are our best so far. This confirms the market’s confidence in our Company, which has earned an AAA rating from Moody’s and S&P, the highest corporate credit ratings in Mexico.
Looking toward the future, we see a horizon full of opportunities. The outlook for Mexico’s aviation industry is promising, because both domestic and international airlines intend to bolster their capacity, adding 1.3 million seats to our network in coming years. Meanwhile, the incorporation of different-capacity aircraft will enable us to improve connectivity in medium-density regional markets. We also see a growth in tourist markets with foreign visitors and increasingly high number of domestic travelers, as the hotel industry develops products that are appealing to them.
We will also continue on the path set so far of incorporating international best practices and state-of-the art technology in the industry, as well as innovative management policies, together with AMP, our strategic partner, whose know-how and contribution to our success have been decisive. As for our efforts to further diversify our revenues and make our costs more efficient, prospects are highly interesting for the short and medium term. We look forward to new businesses in both Mexico and abroad: in our country, with the construction of hotels at some airports in our network, and in terms of international expansion, we are seeking out opportunities in some key regions. Clearly the tremendous experience and in-depth knowledge we have developed gives us an unparalleled competitive advantage to take on new opportunities, either as operators or concessionaires of those airports.
Over these past 15 years, we have built a firm foundation to support our expansion. We have a young, talented and committed team of people, with the ability to grow alongside the Company, and a solid enterprise that responds to the existing interest in Mexico and elsewhere in the world for high-yield companies. We are proud to say that the value of our Company today has quadrupled, that we have built a Company that contributes to the takeoff of Mexican aviation and connectivity in this country, and we will maintain this trend in order to continue to merit the trust and confidence of our passengers, the market, and you, our shareholders.
