Aeromexico Reaches Agreement With Flight Attendant Union That Will Improve Productivity And Drive Growth

- Approval of salary increase tied to inflation and additional compensation of 1.5% for current flight attendants.

- New collective labor contract for future flight attendant hires to be detailed in the next 30 days.

Jun 03, 2013, 08:05 ET from Grupo Aeromexico, S.A.B. de C.V.

MEXICO CITY, June 3, 2013 /PRNewswire/ -- Grupo Aeromexico, S.A.B. de C.V. ("Aeromexico") (BMV: AEROMEX), the largest global airline in Mexico, announced today that its subsidiary, Aerovias de Mexico, S.A. de C.V., has concluded its contractual labor revision process with its flight attendant union, Asociacion Sindical de Sobrecargos de Aviacion de Mexico ("ASSA").

The agreement with ASSA includes:

  • A 4.7% salary increase for current flight attendant personnel; in line with annual inflation as of the last twelve months, as well as additional employment benefits and incentive-driven compensation tied to productivity and quality of service.
  • A new labor contract for future flight attendants with highly competitive cost conditions. This new collective labor contract for future flight attendant hires will be effective as of July 1, 2013, once Aeromexico, ASSA and the Ministry of Labor and Social Welfare have completed the process of establishing details related to clauses within the contract. The new contracts' economic and productivity-related conditions are equivalent to those within Aeromexico's previous proposal, as part of the "Collective Dispute of Economic Nature" proceeding.

Andres Conesa, Grupo Aeromexico's CEO stated, "The agreement we have reached today with our Flight Attendant Union is an important achievement as it relates to the structural changes driving our Company's future productivity and efficiencies, in conjunction with previous agreements with our other Unions. These important agreements help us achieve consistent levels of productivity, based on national and international standards. The agreements reached today will continue to drive sustainable growth to further strengthen our value proposition."

Grupo Aeromexico's Management team would like to recognize our Flight Attendant employees' cooperation in this negotiation, as well as that of the Union's Executive Committee which made this agreement possible. We would also like to thank the Mexican Ministry of Communications and Transportation and the Ministry of Labor and Social Welfare for their support and for encouraging a constructive and productive dialogue among all involved parties.

About Grupo Aeromexico
Grupo Aeromexico, S.A.B. Ltd., is a holding company with subsidiaries that are engaged in commercial aviation in Mexico as well as the promotion of passenger loyalty programs. The Company has a fleet of Boeing 777, 767, 737 and the latest models of Embraer 145, 170 and 190. Grupo Aeromexico began an important expansion plan 2011 which includes the incorporation of 20 new aircraft and properties over the next 24 months. In 2012, Aeromexico announced that it signed a letter of intent to purchase 100 Boeing aircraft, 90 Boeing 737 MAX and 10 Boeing 787-9 Dreamliner; the largest investment program in Mexican aviation history.

Grupo Aeromexico operates its main hub out of Terminal 2 in the Mexico City International Airport. The Group's airlines operate more than 600 daily flights to different cities in Mexico, the United States, Canada, Central and South America, as well as Europe and Asia.

Aeromexico is a founding member of SkyTeam, the global airline alliance comprised of the following 19 airlines: Aeroflot, Aerolineas Argentinas, Air Europa, Air France, Alitalia, China Airlines, China Eastern, China Southern, CSA Czech Airlines, Delta Air Lines, Kenya Airways, KLM Royal Dutch Airlines, Korean Air, Middle East Airlines, Saudia, TAROM Romanian Air Transport, Vietnam Airlines and Xiamen Air. 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 525 airport lounges worldwide. SkyTeam offers its 552 million annual passengers more than 15,000 daily flights to 1,000 destinations in 187 countries.

SOURCE Grupo Aeromexico, S.A.B. de C.V.