MEXICO CITY, Mexico - Grupo Aeromexico today received from Delta Air Lines Inc.
US $65,000,000 as part of this carrier's investment in Mexico's flagship carrier's capital stock, thus strengthening its financial position, confirming its expansion project and creating the leading airline alliance in the Mexico-U.S. market.
The Mexican Federal Competition Commission (CFC) authorized the operation that allows Delta Air Lines to underwrite and purchase 30,182,855 shares of stock equivalent to 4.17% of Grupo Aeromexico's capital stock, paying the $31 Mexican pesos per share Grupo Aeromexico offered in its IPO. This stock purchase also gives Delta a seat on the Grupo Aeromexico Board of Directors.
This is the first time a global carrier buys equity in a national Mexican airline. Both companies will share best practices in sales, operations, equipment maintenance and staff training, enabling them to offer customers the same travel experience on any of their flights.
"Expanding the business relationship with our main partner and attracting foreign investment in Aeromexico is a matter of great pride for all of us that are part of the best airline in Mexico. This undoubtedly reflects Delta's trust in our company and will allow us to serve a larger number of passengers through our global network," said Andres Conesa, CEO of Grupo Aeromexico.
"The benefits of connectivity and strength are of great value to our customers worldwide," said Richard Anderson, Delta's Chief Executive Officer. "This agreement also represents a new stage in a key relationship, which we have been developing for years."
This financial transaction is part of the global contract the carriers signed last year to create a unique alliance in Latin America. This is a long-term agreement that will benefit passengers through the expansion of our codeshare flights.
The carriers collectively offer 93 codeshare destinations that represent 733 daily flights in eight countries. They have also been working on improving and increasing flight schedules to respond to customers' needs in destinations such as New York, Los Angeles, Houston, Chicago and Miami, new daily service to Washington, DC from Mexico City and new flights to Atlanta coming soon. Customers at both airlines enjoy streamlined purchasing processes that allow them to book their travel through to their final destinations.
Consolidation of this alliance also includes the companies' joint investment in their Maintenance, Repair and Operation (MRO) business at new facilities the carriers plan to open in Mexico in 2013. Grupo Aeromexico and Delta Air Lines will invest equal amounts to expand their aircraft repair business, which will also create new jobs.
Both carriers, which are leaders in their respective markets, reaffirmed their commitment to keep offering customers their best quality service.
Aeromexico is Mexico's leading airline attended 14 million customers in 2011. It offers more than 550 daily flights to 42 domestic destinations and 30 destinations abroad in the United States, Canada, Central and South America, Europe and Asia.
Delta and Delta Connection serve 350 destinations in 65 countries on six continents and carry more than 160 million passengers per year. The U.S. carrier serves 32 countries and 54 destinations in the region from the International Hartsfield-Jackson Airport in Atlanta with more than 1,000 weekly flights between the U.S. and Latin America.