Delta Air Lines Invests in Grupo Aeromexico
-- Grupo Aeromexico received US $65,000,000 from Delta Air Lines as part of this carrier's investment in Mexico's flagship carrier's capital stock.
-- This investment creates the leading airline alliance between Mexico and the United States
-- The carriers collectively operate 93 codeshare flights offering greater benefits to the more than five million passengers they serve per year.
MEXICO CITY, June 4, 2012 /PRNewswire/ -- Grupo Aeromexico (Mexico: AEROMEX.MX) today received from Delta Air Lines Inc. (NYSE: DAL) 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.
About Grupo Aeromexico
Aeromexico, S.A.B. Ltd., is a holding company whose subsidiaries are engaged in commercial aviation in Mexico and the promotion of passenger loyalty programs. It has a fleet of Boeing 777, 767, 737 and the latest models of Embraer 145 and 190. As of 2011, an important expansion plan began that includes the incorporation of 20 new planes and properties over the next 24 months.
Grupo Aeromexico operates its main hub out of Terminal 2 in the Mexico City International Airport. The Group's airlines operate over 450 daily flights to different cities in Mexico, the United States, Canada, Central and South America, Europe and Asia.
Aeromexico is a founding member of SkyTeam, the global airline alliance comprised of the following 16 airlines: Aeroflot, Aeromexico, Air Europa, Air France, Alitalia, China Airlines, China Eastern, China Southern, CSA Czech Airlines, Delta Air Lines, KLM Royal Dutch Airlines, Kenya Airways, Korean Air, Saudia, TAROM Romanian Air Transport, and Vietnam Airlines. SkyTeam offers all partner airline passengers a large global network with more destinations and frequencies, and improved connectivity. Passengers can accrue and redeem miles with the different partners' loyalty programs and enjoy the convenience provided at 465 airport lounges worldwide. SkyTeam offers its 506 million annual passengers more than 14,731 daily flights to 958 destinations in 173 countries. www.skyteam.com
About Delta Air Lines
Delta is working to become the best U.S. carrier in Latin America and the Caribbean. As part of that goal Delta has established a long-term exclusive alliance with GOL Linhas Aereas Inteligentes investing more than US $100 million in GOL. Likewise, Delta has invested more than US $65 million in Aeromexico as part of a long-term exclusive commercial alliance and entered a code sharing agreement with Aerolineas Argentinas solidifying its footprint in Latin America. Executive Travel magazine recognized Delta with the Gold Leading Edge Award for the Best Flight Experience to Mexico. Delta provides service in Hartsfield-Jackson Atlanta International Airport reaching out to 32 countries and 54 destinations in the region offering more than 1,000 weekly flights between Latin America and the U.S. Spanish speaking Delta customers can receive assistance in Spanish through its Twitter channel @DeltaAssist_ES providing real-time, on-the-go travel assistance from 9 a.m. to 10 p.m. EST.
Delta Air Lines serves more than 160 million customers each year. During the past year, Delta was named domestic "Airline of the Year" by the readers of Travel Weekly magazine, was named the "Top Tech-Friendly U.S. Airline" by PCWorld magazine for its innovation in technology and won the Business Travel News Annual Airline Survey. With an industry-leading global network, Delta and the Delta Connection carriers offer service to nearly 350 destinations in 65 countries on six continents. Headquartered in Atlanta, Delta employs 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. A founding member of the SkyTeam global alliance, Delta participates in the industry's leading trans-Atlantic joint venture with Air France-KLM and Alitalia. Including its worldwide alliance partners, Delta offers customers more than 13,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit,Memphis, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. The airline's service includes the SkyMiles frequent flier program, a world-class airline loyalty program; the award-winning BusinessElite service; and more than 50 Delta Sky Clubs in airports worldwide. Delta is investing more than $3 billion through 2013 in airport facilities and global products, services and technology to enhance the customer experience in the air and on the ground. Customers can check in for flights, print boarding passes, check bags and review flight status at delta.com.
SOURCE Grupo Aeromexico