Delta Air Lines Invests in Grupo Aeromexico

Discussion in 'Delta Air Lines | SkyMiles' started by sobore, Jun 4, 2012.  |  Print Topic

  1. sobore
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    sobore Gold Member

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    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.
    SC Flier likes this.
  2. SC Flier
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    SC Flier Gold Member

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    I'm confused. Does this increase or decrease the value of SkyPesos? :confused:
    HaveMilesWillTravel likes this.
  3. TravelerRob
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    TravelerRob Silver Member

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    I'm thinking this was done for one of two reasons:

    1. DL wants a stronger partner in Mexico to compete with UA who owns that market out of IAH; or
    2. DL wants to make sure the already-weak SkyTeam doesn't get weaker by an airline going under. DL and possibly AF are going to keep several ST airlines afloat :) (Just a hunch...)


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