Protests break Mexico airport plan

The government said it was studying alternative locations and would revoke the land expropriation orders for the Texcoco site, on the eastern outskirts of the city.

The $2.3bn airport - the largest public project announced since President Vicente Fox took office nearly two years ago - would have eaten up about 4,000 hectares (10,000 acres) of land in 13 villages.

The cancellation comes three weeks after violent clashes between police and farmers opposed to the plan.

Kidnap

"Given the rejection by the farm communities of the original project, and given that there are convenient alternatives, the government has decided to cancel the expropriation orders," the Communications and Transport Department said in a statement.

President Fox's administration announced the airport project in October 2001.

Farmers rejected the original compensation offer of $7,300 per hectare ($3,000 per acre), and began staging marches and blockading highways.

In July machete-wielding demonstrators, backed by left-wing, anarchist and anti-globalisation groups, battled with police for three days.

The protesters kidnapped 19 public officials, demanding the release of jailed farmers - which they obtained.

Hemmed in

Critics at the time said the release of the detained farmers sent a message that violence gets results, while peaceful protests do not.

But the government insisted it was pressing ahead with the project, and raised its compensation offer seven-fold. This offer was rejected.

Mexico City's existing airport, a 91-year-old facility near the centre of Mexico City, cannot be expanded because it is hemmed in by homes and businesses.

It is operating at near capacity, and only one runway can be used at a time.

The proposed airport would have had six runways.