Q3 2020 Grupo Aeroportuario del Pacifico SAB de CV Earnings Call
[music] locations on the whole were still checking for todays program. Thank you for your patients will begin at approximately.
Good morning, and welcome to gaps third quarter 2020 conference call.
All lines have been placed on mute to prevent any background noise.
After the presentation, we will open the floor for questions at that time instructions will be given if you would like to ask a question.
It is now my pleasure to turn the call over to Maria Verona Abide Vice corporate Communications. Please go ahead.
Thanks, Good morning, Peter do well I don't want to do.
They can go to Gulf coast work for lunch or Green, we called the.
I Hope you and you probably know hell be unsafe.
Hello Hello.
Oh no.
You know your body like in the third quarter, we sold.
When do you kind of come could it be telling you pick up the entire login you would go into the third quarter two weeks [laughter] function.
Function yours, [laughter] smoking, because I know how long do of course in conducting yourself.
Okay.
Okay I was thinking.
What's also sold globally compared to 32 cents.
[laughter] both of your coffee during the second world pretty funny.
Just don't know what that could do the codell neglected it shouldn't be Mexico easier.
Okay Louise people He Congress pictures of me.
Yeah, we're very busy working wonderfully starting to the proposed you can see the neutral to eat destination.
[laughter] Lucky core non routine and E. coli, 30%, South and just talk a good long ago I mean, how would that look like they're of course good work.
We feel totally could be put into will appeal.
Well the business Oh, he got call it for me.
Book.
Oh, we're very focused on ensuring there will be no passenger I mean, we're starting their coffee Uh huh.
Oh.
Yeah sure it could be.
People in Buffalo, New York, We Didnt go no we're not going to school.
I'm proud to show you got the demonstration you could probably has little 30, because you're not there yet I, therefore, hilda could because your growth.
Well, because I felt we needed to show.
We'll be talking North America, we thought it would be related to the cold, but being funded.
To be accretive to GAAP purposes, where we view do you mean, how do you consider to be sure because I don't think I know the stoppage true. He told me out talking to your school vacation on the wheel.
Well it can do for you.
Yeah, well so well.
Well, we could creep is your Oh will be supported by the board.
Probably two fold.
The Gulf died.
[laughter] those controls compete to be a double I forgot.
The burn because I'm sure you know you're serious I did begin to bundle and how can we view everything function Pablo I'll put the things in the beauty on putting 36.
Well, we didn't do anything from diesel pieczynski, they'll probably be quite old [laughter]. So think both physical area. What please go ahead.
[laughter] breakaway threat.
I want to mention got through the third quarter to 30 coordinate we launched earlier regarding bode well for most importantly.
Welcome.
Because you feel for all their push it.
Okay, well then what do you mean the business personal savings.
You are welcome Nike definitely coastline either.
Uh huh.
Well, we focus in a lower overall cost for.
During the quarter, we probably corporations fourth question.
Because the live show through.
Well because the word sorry.
So anyway.
We're also.
Oh in full upon them so we're supposed to be.
Okay.
Yes, so first of all to generate the remainder.
Well go to conclude the school you can judge the 2021.
Well, it's something that's true, but potentially reinstated okay, well I suppose to be very thoughtful 40 41.
He won't be only when we opened the first bagel for all do that later on.
[laughter] linearity goes along right in person.
21.
Why don't they still can see them to you.
We don't get around 30%, but those energy consumption.
[laughter] that's brings us closer door felt were clean energy goals.
We intend to compete deal looking for deals solely focused on ways to increase capacity.
No you don't follow them.
[laughter].
He does well with blow down the breakeven okay.
But you got to go eat or cost reduction actions and stuff. That's eventually dishes.
Additionally, it's good because I know most people Oh, my gosh, I guess number one but once you have heard me in school I'm too old to pumping, which is I guess because she was you know [laughter] piecemeal basis help them bring this is more than the north to address how we operate independently uncommitted in business.
Okay.
A couple of examples, but I'd be lumpy social reach 22% you can do until they get on with it.
We've got some after they've been two makes you the first launch.
Oh burden 91 door [laughter] coupon kids during January and February we were ready to do whatever work analyses will be lucky with you for the additional 36 month.
No you know we have 2.5 billion up there So June July.
Nobody here, who you are what that's confusion defeat the reason that I used to live we have gotten better.
So in summary, the second quarter conference call, because it's really going to be Lucky [laughter].
[laughter] studies conducted an easy to use by Harper said double the lawful for that.
Probably like to report that we all know.
I love to go to <unk> I'm sorry.
Sure.
[laughter].
[laughter] parallels to formally family.
That's correct.
Born.
We're working on fine.
Third the Korea, India and Russia.
Josh would be delayed for the next one [laughter].
[laughter] I'm feeling more not less.
No [laughter].
Yes, I love, the new firms [laughter], Oh, the Nielsen show terms going for what.
There are lines of the <unk> economy situation I went through the <unk>.
Currently we just don't compete I called it [laughter].
There's nothing like that like for before.
Right. That's true when you talk about how does that mean, you're sure I'm doing well. This year did not look like and where youre not going to be sold to the person to person brought real for anybody.
Well I used to be communication with them for a repeat.
No were pulled from there.
Jasmine.
Oh no no.
I know we spoke about this up this year.
You have to work through that.
[laughter] directory, [laughter] dozens and dozens of music.
HM.
That would be good.
No not really.
Because it was my gut would be wrong.
[laughter] per year.
Hello, [laughter] every time, there's a force majeure.
Social [laughter] sounds twice.
No I mean, you look what's most countries.
Countries I'm sure Terry on topic [laughter].
So one of the first.
So with all that I'd be like the mandatory capex.
Good morning, ladies.
Ladies are response.
You're welcome to support all their names or wouldn't be [laughter] time [laughter] [noise].
I'm sorry couldn't.
I'm not sure what conclusions forms nine you're more reliable.
Before going to <unk>, because I don't think either.
Income from continuing throughout the year.
I didn't even start concerns yourself pilgrim [laughter], perhaps some people out there.
[laughter] guidance when Theres no worse to 32.
So from an overall oh, let's see what will converge.
No you're right, we're not where I'm wrong.
He is done according to their little unusual food, but I'm sure [laughter].
[noise] ordinary insurance fees are good coffee, we're in something like a docket, but would not be nuclear.
[laughter] Hamburger responses across Wesco remains idle and [laughter], we're sure sure I present [laughter], 13%.
People this person when I moved to the luncheon.
<unk>.
Well, the nice thing about where I come from field and he said well I probably should have done from a phone. So I wouldn't have heard people we love it.
85% of do through high rise from here.
I would like to conclude then [laughter] everything that's Berman president and the underlying fundamentals going forward.
<unk>.
Sure one of the worst that got worse at first but we know that each drug it's gone up a bit.
You can do there.
I was hoping you could grab sometimes it's probably.
[laughter].
Not being part of course, the link that concerns me because that's how we're a company that's kind of a bucket.
God knows how about more you keep the life block. This I love working then definitely we don't always people under <unk>.
So that would be somewhere between the tango.
He got stronger and better company for the group to hold the cooler.
I think I read my rough welfare system for the <unk>.
<unk>.
At this time, we will open the floor for your questions first we will take the questions from the conference call and then the webcast questions. If you would like to ask a question. Please press the star key followed by the one key on your Touchtone phone now.
If at any time, you would like to remove yourself from the question queue just press the pound key.
For webcast participants simply type your question in the box and click send.
One moment lobby Q.
Well take our first question from Alejandro Demichelis <unk> of Credit Suisse. Your line is open.
Hi, everyone. Good you were taking my questions in it because she was probably the first one is on the renegotiation of the M. <unk> [laughter].
I'm curious from reach airports are being do whatever else I understand.
It's it's been exactly.
It's a negotiation on the needs of these old been she's through virtual I'm curious on Richard which I'd be doing it.
Yeah I.
And also what what's your initial expected outcome.
I am thinking that they do need to guidance range on your your your assumption on store traffic. These don't read that.
Yeah. My second question is on the commercial these names.
I mean for this quarter, we saw our no no no good revenues roughly in line with drastic.
Although we know that there are <unk>.
Art gun drugs, you, but the thing is supposed to be between 80 and 90% of that your revenues. So you can think you can you. Please provide more color on the stopping short of the construction.
Yeah, I'm not each one of these guidance going forward I mean, we can expect that these contracts will remain in place globally.
Well well into the future or did you take on drugs, Oh, not terribly expensive age if you're gonna be multi site. Thanks.
Thank you.
Oh. Thank you for the question as you know [laughter] <unk> baby.
We define.
Oh cool for of course [laughter].
Mexico.
The general themes, we heard a story for you.
[laughter] decide something topics that we originally had complete.
Competed for reduce it would be we would be pretty places already in five years, but instead is yours. So what we are [laughter]. During some very old did change or you do file for the children.
We'll be ideally oh can be on the on the topics.
Hi, Robert Derrington before we say.
Maybe.
Yes, there are some see commercially reviews.
For sure one is true third.
Got it.
Sure.
We have a 41 [laughter] shamwow, Oh Gee Oh, the abuse. So you really don't <unk> bees, maybe I got.
God, where it will start to blur future Jay So do you guys see long just someone become weaker sisters.
Me too.
For January for Rocky.
We need to have sounds like mono Boston geared it could make sense to do okay. Before you start to be able to launch so for Justin I will shake out.
So does the VIP lounges that don't breakout where the old.
I'm also they almost 85% of the stores so pre merger if it could be used for stores, what crude backdrop our old joke.
Talking about the centerpiece for the commercial revenues.
Hi.
We spoke on the last conference call, we already know Trinity Foley fees for for Rosie I know John Ford did not want to go read the news.
Yes.
Right sure could they do most difficult burn to drive.
Two eyewear.
We pay them.
So you know so we're bullish views that we make these drops.
To be meeting already.
I live with their degrees Oh, Dear Oh the passengers.
[laughter] do you would you would.
We do still defeat for a good year.
Do use the first part of it could be you I would say that today.
Okay weak area related to date possible second wave Oh geez.
Well next go.
Okay.
Hi, Michael Good [laughter] bows.
Yes, they do drive will continue.
It could be good year for board Dot the first quarterly.
Okay. Thank you Roland I'm, just a oh on the on the first question.
<unk>.
Oh for movie, so OVC and it factors.
Let's see what's your initial expectations for the outcome of the all the airports piece.
[laughter].
Well I'm not sure it was weird stick is Oh Wow [laughter].
So they told me that somebody does it was around 30.
30% of these two factors.
Oh sure.
Hi, Mary So don't slot Oh, sorry.
Okay. Thank you very much.
Well take our next question from Marcio Martinez of GBM. Your line is open.
Hi, Thank you and thank you for taking my question line to everyone and that my question would be on Capex for that for the fourth quarter of this year, maybe if you can give us some color on how much do you expect to be largely a <unk>.
Got it thanks for for for water that will be my first question.
And the second question is regarding bad debt provision up there at 113 million resins that you recognize in day in this quarter well at night. What my question is if if if these 100 media and were recognized as being the quarter already said that cumulated variable here.
Maybe if you can give us more color on on a cool, which guy and these discussing these.
He is this scene commencing in in in the provision.
[noise] time or what he said he sees sold.
Well.
Capex for the fourth quarter, and we are estimating a.
I see the amount to be a spin.
According to our proposal with the with the government of Mexico in Jamaica, and so far we have spent.
Spent around 2 billion to be affairs, and the idea is to reach around 1 billion more one thing to add by the defense. It how is that I know it was here should we read as already indicated we will continue with our our proposal in that in that sense.
Well, we got to the distribution it is.
From inserting a million pesos, it's a for the aggregate of their nine months I self September.
We yeah, we are struggling with the airline say with our tenants in order to try to a.
Perceive that as much as possible and Dr. never should the federal payments and in some cases, that's a almost impossible and we cannot.
I like the breakout that are detailed the clients obviously.
We believe that these provision it's enough for the entire here.
We will continue working with the airlines here.
The thing is you know to reach an agreement.
For the propane is in any case, if they if they are not able to to continue with the operation do you foresee any in any case, if they decide to do.
I believe that this basis probably.
We'll have to go into a legal process in order to recover these beasts announced it but.
But for now this permission.
Yes, you know for the for the entire year.
Perfect and just yeah, well, let me see if I understood correctly. So I think the capex for the fourth quarter is compromised to being young but you expect it to do to get to reach an agreement to only is banned 1.2 billion.
No I mean, we have to spend for the first nine months 2 billion.
We Ah yes.
Who deploy another another billion 1.2 billion that a weed out where our proposal in line with the proposed certainly sensitive to the governments. So it's something that indeed, we will have to finalize their review that review process with the with the authorities but.
For now our target is to reach the Capex football's have we sent [noise].
[noise] and and and.
And do you think well maybe.
Yeah. If you if you can give us a sense on how we are feeling during this negotiation we'd be oh, sorry is it that that did that dogs on band negotiation as being quite at basi deep constructive or and you see the slum BD.
Capex for it for water on the MDP negotiation on add on their on their way it will be it will be.
Your your.
Person out of you it will be.
A positive outcome.
[noise] I understand.
She was his own.
I will show you know Theres us.
Lucy I sold where it was just shouldn't we be municipal because surface persinger.
Oh really open it cleared on Taminco negotiation.
So in general terms.
You all their needs so capex for the coming.
Sure. Thank.
Taking into account they do not have to change it.
Your mom and your forecast for passenger for the company.
So I will say in general terms I.
I could say that they've chosen Hughes complete all this guidance.
Got older style perfectly did a really hard time, it's true for no change from the Oh did you demand for a couple of years, So I will say that well.
Your steel.
[laughter] team got.
Uh huh.
So in terms of guidance I.
I'm not increase.
Our own parents for certain third or so of commuter traffic for the quarter, even five years.
Wonderful well, that's I think that's very clear thank you so.
Thank you Howard.
Well take our next question from Pablo most device of Barclays. Your line is open.
Hi, Good morning, Thanks for taking my question just sort of reality what is the if you made that you are using for these new MDP in terms of traffic for the next five years and if these at this estimate.
Incorporates some how will stay so second wave on Cobi gauges that will be my first question and my second question and I know this is kind of long term right now, but do you have any any update on that their mail processing facility. If you kind of have you obtain the approval from the U.S. government to two.
Oh, you that airport.
As well or domestic passengers or what's the status on that thank you very much.
Well it is really hard for me numbers [laughter] someone's got a reality check you really really fast.
Wow.
For sure.
[laughter] Oh at least from your shirt. There, we know that attrition number of seats of that makes complete there. So there's no matter what they believed that.
Good for you from a either here or there that makes you feel that people are really good sense about the size of the offer that we have today in Mexico.
Thank God.
He also interesting I mean, I think some way help us to do so in some way.
<unk> for a copy for do you really.
We must also.
God for each time Warner will see that we show the first wave Wow.
We do.
Dave Jones [laughter], because she goes so so so for cultural so called trees.
Yeah.
Got fixed directly yeah, no it services for the game.
A couple of no no no.
No services I will say few quite up to some guy you buy data testing.
We all know that the punch history gobbled too so I would say that we are.
[laughter] docket take away, who has a bigger impact all day.
No Arnie became <unk>, yeah, we will not be really.
Dr Stockholder airports he area maybe.
Maybe the older cars, we are see I've used at most.
I will say.
Difficult biographer forecast.
Good day.
He services to the U.S.
He told me she or he is presently don't get criteria. So the health right. You said that you were.
Yes. She could go do you should just take away.
I mean, what I'm trying to say is that no additional closure of the economy Oh.
Southern states of the United States or in Mexico, we aren't going to foresee no. They called me mom.
I I need degrees C or change the trend of the passengers girls fruitful first called me Mike.
It is there. So I was just wondering quite how's the old they opened a new building.
Okay Fair so big construction, we are aligned with the original plan.
So you got to be less wireless they called me did you do you see a unique will be.
Oh Prairie Sea food operation.
Yeah. There are some did he for bird meets with dangerous good room enough to Mexico, Overbuild I will shake out.
Work, you know dose groups for sure they could be Scratchers, how they told you stroessner is lower than we originally expected.
I would say no.
Could you talk you were talking we go towards peace time, we don't foresee it leasing their home in any kind of Oh, a bigger change Oh do posting is outdoor spaces for do operational piece facility.
So do you think that that the parameter.
I would be granted in the first half of next year or the second five years for timing wise. Thank you.
I would think that we could expect to have older older Paragould someday. They said go Oh.
Okay next year I will say that we are still working with all the work we're doing everything we don't foresee any oh, you furlough. So your preference would be to be ready Joe's.
For a couple of months before they do okay.
Perfect very clear thank you very much.
Our next question is from Rosario, our awful of EUV, Yes. Your line is open.
Yeah, Hey, so everyone. Thanks, a lot for the opportunity or so one question here on our side.
If you could speak a little bit about the outperformance lots trask <unk> GAAP versus the other Mexican airports what are the main reasons for that interview and watch retrospect in upcoming quarters. Those routes. These may continue.
And if you can also state at your current expectations on when Trask, we'll come back to 92 levels I think would be we would be very appreciated even though we know it's quite difficult to know like at this moment, but what is your current expectations on that.
And just a confirmation as bad one day and the timing you mentioned in the release and easier. So just confirming use these for the conclusion of the MDP.
So we should already have a a new capex that I knew dairy by the year end.
That's either on my side, Thank you Alex.
Thank you this is already.
[laughter] one other things that we are seemed I did a degree or.
Oh, Gosh appeals to how their performance over 14.
The region.
Ladies first with the portfolio for GAAP.
You know the Trump gets me so they sure do you parse Oh business travelers, so well I don't think we are see you.
Got you quandary outperform all the older older person there your region.
We have our office division.
We do need a farce you get my rough market Vicki Cardica markets, our daughter.
Are you, saying back our four where you can do except Mexico batteries I first start of that's played the Alderfer Rose Oh Wow.
Well just have to be the same they've had kind of a process Oh well.
[noise] do you.
We are seeing a decline how are you.
I believe it does sounds kinda before here on Friday, we know for the Mexico market. It's toxicology program the bigger the bigger markets I'll turn so if international passengers for for Mexico. So loved it seems that's when we saw is that.
Part of the services that used to be directly Oprah is about you for everything from you know soccer lives from God from San Diego.
Where can fill in some ways quite naive shops RV park abuse of this market be go to Jeremy theirs.
Yeah, Hey, cheap Dare say my mom's no frequencies.
And almost as good as this is my Meraux lose their lives Gosling shows so I'll just try to yield Oh some of their lives really were not quite a lot. She told there.
[laughter]. He tries to try to reduce these markets. So southern California. So I will say that got me jumping to follow.
Also <unk>.
Okay, that's all I got.
Goggles for each time, we are in the market that sold California also it was actually in the market for instance that is the biggest lots of goals both are important but yes, all right Carlos.
For instance, we are fees.
Sure Mike.
Groovy or read it so weve rapidly recovering from from public Reits is what we see is the strength of our.
She's passengers that they feel in some way really closed for Oh, I mean, if they fly so those aren't really students travel is strong.
Got to about two hours so in some ways. It feels really close I really seems to come back to go indicates a baby care I know Oh 50. So.
The second bar in some ways. They raised you know markets for later sure will be a stronger unleashing the coffee machines.
The biggest part of that my Kids got Scott how are you guys. If you could market. Our original American go live so three hours of flight to go for four fold to our workforce.
For example, our new related he doesn't know we really know how far we have Joseph.
At school or smoothed over Oh Brooks of law called that out for you.
Well I think just on these on.
On this crisis. So there's no there's I would say bad debt.
Interest also recorders as Rafi will come do you think there could be more if there's no big change of the penalty fees for all the U.S. for Mexico for victory resolved if.
Do you feel the crisis.
I wish you guys.
There were no really really.
Really hard to say because we are.
Oh no change in the number of skews so they're all for a 500, Oh Nicole its time.
But also the U.S. carrier, so I would say that if you.
Oh, but no more so with the features that we are the keys to date.
When she does.
Dependent I was there all day on their books, but we will see our perceived 2023 that will be great.
The same numbers are going to play that game.
Older person would be a wrong, where are you going to be for a 40 45 to do any big it is small this is some of the smaller third person you know where you got were good.
[noise] indexed it's time for them to be we are taking to ha who.
Oh, who lives were broke down 30 feet each time you.
His line.
At the end of this year.
For sure is also difficult to two to.
To really know this time, because they know that they also due to the crisis you see some way our daughter of their work is okay.
The daily value basis that used to be there.
There is talks with day, we didn't agree with the federal government. So we're supposed to happen the old. They all did you multiply that do have to complete as work on these well good luck square of this year.
He's divorced though far worse scenarios you hopping Oh, the first why did they come to you.
Perfect very clear thanks, a lot how about Brady we can.
Okay.
Thank you we'll go next to Marcos Barreto of Citi. Your line is open.
Hi, everyone. Thank you for calling for taking my question.
First I just was wondering are you taking specific measures with airlines that might be on the financial district.
Making them, saying, a bank or something else and.
And my second question is you could give us any color on your thoughts there.
Regarding the airport project in Bolivia, and the loom.
Thank you.
Hey, Hi, Michael this is old.
No. They measure that we articulated with airlines and we have been trying to to support them. According to the situation and more than measures we are providing some.
Its specific and.
Okay.
Programs for incentives, but also we want to add.
They give them some additional 10 for for the payments to try to be updates and tried to to give them the opportunity to recover these specific markets. They have so we are I, specifically, providing some support.
In terms of I I different size of bonds, and we that we as more they're launching themselves. They have they have down that term. They have 40 accounts receivables and so at least you know 10 for a than the past due payments, but in general we.
Have been turning to support and see obviously there are some they are some.
One moment please.
Just to feed line, you'll hear music until then please.
[noise].
Once again, please remain online for experiencing technical difficulties backup feed line one moment. Please.
Please stay on the line we are reconnecting our speakers.
Okay Maria were already in the line.
You make can you can you hear you. Please proceed yes.
Hello.
[music].
Michael.
We may continue.
Okay. Thank you well I was saying sorry for this interruption.
Hey, so those are the specific measures that we are taking it with airlines, India, we want to support them.
In tried to to deal with this the current situation and that's part of the ER program that we are providing to to the to the airlines in the case of the a is sent volusia into bloom, specifically regarding that that luminaire board that was announced by the government we don't have any.
A specific a detail about these projects, but in any case, we could be interested in getting bigger and we'll be launching a.
Eric before for this airport or an action for these upper we could be interested in.
For the centrality airport weighing what we know is that the steel a on there on the on the works and they are going to continue with the works is we do have more more specific detail in the army will be operating these airport with the Mexican airports just in that.
They announced a window Noam <unk> more about about the spread it.
And we'll take our next question.
From Francisco Suarez of Scotiabank. Your line is open.
Thanks, so much for taking the call and and and the question that I have a follow up on.
How would you have been successful to post.
Better than average passenger traffic and and and to what extent that is not only explained by unique assets like the quantity, but also to your initiatives on creating the set of incentives.
For carriers to open or reopen the routes or add new frequencies and on that sense. So the first question and if you think that the overall performance of passenger traffic is linked to your to your incentive programs and the second question is actually on your incentive problems as such.
Dave what can you tell us about the underwriting risk how do you handle those underwriting risk on on on this without going to the specifics do you differentiate the potential credit quality under counterparty on the carrier how do you deal with that is that some.
Thing that that actually as I said help you 10 years ago. When he cannot went bust and you were actually far much better compared to your peers precisely because of your sound underwriting standards that you had at the time can you walk us a little bit on how to prevent that though.
Those incentives wouldn't be affecting our creating more provisions in the future. Thank you so much.
Can you bucket was his role.
Third line.
Your first.
About our utility bullish views for due for the target we have always analyze.
Over the past grandchildren for just under one in 2008, and we're almost 40% of the or the Mexican carriers lows, they're they're they're they're please [laughter].
First we understand perfectly that their recovery of the more if smaller markets are more difficult God the recovery the biggest market for.
You are.
We know that that Mexico, while I cannot rule the biggest domestic market a market for for GAAP results.
Recover really fast in the coming months or years.
Before you start.
We had a more cheese, we our original did will be more and more difficult to recover. So first part of our incentive policy is try to give.
Some additional incentive for the market that we know that I would strongly more so we publish our numbers for Q3 growth for all their land that day. Good large pay for received the incentive daily I think approach to Brookdale is more there mark.
Just because the day will be harder to recover cynically month, so I think that that bar abbvies really successful.
For sure.
The specific characteristic of our market on how we're able to Hollywood happens or not but degenerative market Mcgee. They chose the policies given some additional push to bring back the their last two hour.
The second pad for us, but it's really hard to know this policy is that we also saw that the manage the risk has been always do the DNA of gap so for any airline to participate of this policy.
We need to have to do or not do not have any kind of receivables first and second do have all the guarantees the little guarantee to our board.
Additional risks for the future on all GAAP. So in general terms I will.
Assumed that our policies related to incentivize the smaller markets and second is the same support.
Adding to manage the risk of gap always try and you have the more you fancy view of these of DC business.
Thank you so much great answers take care of yourself.
And to ask a question. Please press star one on your Touchtone telephone.
We'll go next to Gabrielle himmelfarb of Scotiabank.
Hi, Thanks for the call just a quick follow up question on have.
Have you seen a worsening in collections from carriers for NN, because that I think can still increasing during this quarter.
Can you give us a bit of color about how collection for.
We still have been saying.
Hi, guys. This is sold.
Well the closures have been very very good. According to their circumstances is not the same situation in Europe recovered is scenario bad we have been trying to to dealing with the airlines and giving them the opportunity to be up a update with the with their collections.
Our idea is a to defer some of the payments indeed, and we have some of the new payments in other for program and that will allow the airline to have the liquidity to continue their operation. So broadly that that's why you can see.
A little delayed the colleges bad so far we only have a province with a higher length from 27 that we have in our 14 airforce and we are trying to deal with this situation trying to help them given them the opportunity to update that they're they're they're they're accounts payable.
So in general is a we have a very good a collection level.
Okay. Thanks, and then the indicator the tenant.
Have you seen any worsening collection of bran.
Well the it with the tenants we are working also supporting them.
We don't have a too many problems with them. Obviously, we are very close working in touching base with them about and the level of discounts. They can receive the apparel. They have that discount program, we provide for the minimum guarantee fee.
He is that they have and to be update in the receivables. So in spite of the of the negotiation and we know that that's working a very good we have more than 1000, a contract win with the tenants and we have only around six or seven is pay for that.
They have left at the airport, so meaning the effect and obviously the idea is to try to provide enough support to continue their operation once we see more recovery in the past year driving we can see also the recovery of our tenants.
Okay. Thank you have a nice weekend.
And this concludes our question and answer session I'd be happy to return the call to our management for any concluding remarks.
Thank you everyone.
Again for joining us today on our third quarter results conference. We want to remind you that we are always open and available downwards. Your question and also I would like to remember is that all the team on the GAAP will have worked really hard on these difficult times for maiden best possible results for the companys onto Capex.
All the all the safety procedures for our our passengers we will keep our really close eye on what's happening on the on the coming weeks and months, we declare it keeps this time, we do we wish you a great day good bye.
This does conclude gaps third quarter 2020 conference call. You may now disconnect your lines and everyone have a good day.
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