Grupo Aeromexico Announces The Most Significant Fleet Investment Program In Mexican Aviation History

Jul 25, 2012, 10:23 ET from Grupo Aeromexico, S.A.B. de C.V.

MEXICO CITY, July 25, 2012 /PRNewswire/ --

  • The order includes 100 Boeing aircraft, 90 737-8 MAX and 10 B787-9 Dreamliners.
  • The order is valued at approximately $11 billion USD.
  • It represents a major technological advance in the airline's fleet to remain as one of the youngest and most efficient fleets worldwide.

Grupo Aeromexico, S.A.B. de C.V. (BMV: AEROMEX) announced that it signed a letter of intent with the Boeing aircraft manufacturer to purchase up to 100 next generation aircraft worth close to $11 billion U.S. dollars. This intention to buy represents the largest investment by a national company in the aviation industry in Mexico.

The order includes 90 narrow body 737-8 MAX jet airliners with CFM International LEAP-1B engines, and ten wide body Boeing 787-9 Dreamliners, with General Electric GEnx-1B™ engines. This major order will make Grupo Aeromexico the first Latin American carrier to operate this type of aircraft.

The addition of these new aircraft is part of the carrier's ongoing fleet renewal program as it intends to maintain one of the youngest fleets in the industry worldwide. The modern comforts featured by this next generation of jet airliners will offer customers a more pleasant travel experience.

It is important to note that this order for 100 aircraft is in addition to the package of 20 new and wholly owned acquisitions the carrier announced in 2011 including ten Embraer 190 airplanes and ten Boeing 707-8 NG jet airliners, plus the nine Boeing 787-9 Dreamliners whose first delivery is scheduled for Summer 2013. Delivery of the Boeing 737-8 MAX will begin in 2018.

Both the Boeing 737-8 MAX and the Boeing 787-9 Dreamliners belong to the next generation of 21st Century aircraft that greatly improve travel conditions for passengers by offering modernized cabins featuring greater comfort and technology thanks to their increased legroom, personal touch screen entertainment systems, bigger windows, larger overhead bins and Sky Interior lighting systems among other features.

These aircraft are more environmentally friendly, in terms of operations as they significantly reduce fuel consumption and thus CO2 emissions calculated at a 13% lower emission rate for the Boeing 737-8 MAX and 23% less for the Boeing 787-9 jet airliner compared with Aeromexico's current fleet. Their advanced technology also helps increase flight ranges to more distant destinations compared with the carrier's existing aircraft, while also reducing noise pollution and maintenance costs.

"This investment demonstrates the commitment Grupo Aeromexico shareholders have pledged to the country and its confidence in Mexico's macroeconomic environment and future," said Jose Luis Barraza, Chairman of the Group's Board of Directors.

Grupo Aeromexico CEO Andres Conesa said, "This order represents the most ambitious investment program for a national carrier in Mexican commercial aviation history and a major step forward in consolidating Grupo Aeromexico's international leadership position while moving forward in accelerating the Group's modernization plan. We are taking this major step together with our partners, Boeing and General Electric under a flexible structure that allows us to grow according to market conditions."

"These aircraft mean a huge leap in technology in the airline's fleet and will allow us to have one of the youngest and most efficient fleets worldwide, thus significantly reducing our environmental footprint and consolidating the Group's fleet into only two types of aircraft," added Conesa.

"Aeromexico has earned its place as Mexico's leading airline with a commitment to performance. We are pleased to build on our 50-year partnership with Aeromexico and provide the most fuel-efficient fleet in Mexico," said Ray Conner, president and CEO of Boeing Commercial Airplanes.

"The 737 MAX and the 787 Dreamliner provide unmatched passenger comfort and fuel efficiency allowing  Aeromexico to expand their fleet, open new routes and serve new long-range markets –continuing their legacy of airline leadership."

Aeromexico again reaffirms its long-term commitment to the domestic aviation industry by staying at the forefront with the best fleet to deliver a world-class product to all of its customers and business partners.

Grupo Aeromexico is Mexico's leading airline. It carried 14 million passengers in 2011 and offers close to 600 daily flights to 45 destinations in Mexico and 32 international destinations in the United States, Canada, Central and South America, Europe and Asia.

About Grupo Aeromexico

Grupo Aeromexico, S.A.B. de C.V. is a holding company whose subsidiaries are engaged in commercial aviation in Mexico and the promotion of passenger loyalty programs. Its fleet includes Boeing 777, 767 and 737 aircraft and the latest Embraer 145, 170 and 190 models. The carrier announced a major expansion plan in 2011 to acquire 20 new and wholly owned aircraft including ten Embraer 190 and ten Boeing 737-8 NG airplanes. Aeromexico will take delivery of nine 787-8 Dreamliners over the next three years.

Grupo Aeromexico operates its main hub out of Terminal 2 in the Mexico City International Airport, and offers close to 600 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 partnering 17 airlines: Aeroflot, Aeromexico, 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 and Vietnam Airlines. SkyTeam offers all partner airline passengers a large global network with more destinations and frequencies, and improved connectivity. Passengers can earn and redeem miles through the different airline partners' loyalty programs and enjoy the benefits offered at SkyTeam's 503 airport lounges around the world. SkyTeam offers its 531 million annual passengers more than 14,000 daily flights to 983 destinations in 178 countries

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