Delta has reached an agreement to invest $65 million in Aeromexico to deepen the alliance between the founding SkyTeam partners as well as expand a maintenance venture on top of existing overhaul work between the airlines.
If approved by regulators, the terms give Delta an equity stake in Mexico’s only full-service, global airline and cements SkyTeam’s growing presence in the crucial growing Latin American region. Delta also will have the right to name a member of Aeromexico’s board of directors.
“Aeromexico has been a strong partner for Delta in Mexico and Latin America, and this reinforces our relationship,” Richard said in a release issued Wednesday. “By forming an exclusive long-term commercial partnership, we will leverage the strengths of our two networks to provide expanded customer benefits and build the foundation for a joint venture to better serve the U.S. and Mexico marketplace.”
Delta and Aeromexico are planning a joint venture for maintenance, repair and overhaul work at a site to be determined later. The facility will expand on the work done between the carriers now and will not take jobs from either carrier’s maintenance staffs.
“The MRO agreement will represent significant savings for our maintenance group while continuing the extremely high quality work we receive from Aeromexico,” Ed said in the release. “The facility is a natural next step for the two airlines as we leverage the full benefits of our alliance.”
In a memo to Delta TechOps employees, Tony Charaf, president-Delta TechOps, said Delta TechOps will own a 50% stake in the maintenance JV and invest in an expanded maintenance facility in Mexico.
“This is a significant milestone for Delta TechOpsmaintenance, repair and overhaul (MRO) business as we expand our global footprint into the Mexican and Latin American markets,” Tony said. “It will enable us to provide our customers in these regions with a maintenance facility that is nearby, provide a significant cost savings to Delta and at that same time allow us to explore further leveraging the high-quality airframe maintenance work that Aeroméxico provides Delta today. We also expect one of the additional benefits of this JV will be an opportunity for us to grow our MRO engine, component and APU work in Atlanta by leveraging the airframe work being accomplished through the JV.” The agreements announced Wednesday will significantly expand the alliance offerings between Aeromexico, owned by Groupo Aeromexico, and Delta. The carriers will expand a codesharing agreement beyond the 125 daily flights to include all flights between the countries on the carriers as well as selected flights beyond some hub airports, vastly increasing choices for customers.
The carriers’ best customers will have new benefits such as expedited call handling and new online capabilities to reserve seats. Future benefits contemplated include more online capabilities to book award travel and upgrades as well as co-location of airport facilities between the carriers.
Aeromexico’s strong financial performance since its recent financial restructuring makes the deal all the more attractive to Delta. After its successful public stock offering, Aeromexico has posted strong earnings, including its highest operating margin in 15 years during its June quarter.
“The expanded agreement with Delta will undoubtedly allow us to solidify the commercial alliance we have been building together for several years now,” said Aeromexico Chief Executive Officer Andrés Conesa said in the release. “We will work with Delta to offer more options for our customers, including greater access to Delta’s global network.”
If approved by regulators, the terms give Delta an equity stake in Mexico’s only full-service, global airline and cements SkyTeam’s growing presence in the crucial growing Latin American region. Delta also will have the right to name a member of Aeromexico’s board of directors.
“Aeromexico has been a strong partner for Delta in Mexico and Latin America, and this reinforces our relationship,” Richard said in a release issued Wednesday. “By forming an exclusive long-term commercial partnership, we will leverage the strengths of our two networks to provide expanded customer benefits and build the foundation for a joint venture to better serve the U.S. and Mexico marketplace.”
Delta and Aeromexico are planning a joint venture for maintenance, repair and overhaul work at a site to be determined later. The facility will expand on the work done between the carriers now and will not take jobs from either carrier’s maintenance staffs.
“The MRO agreement will represent significant savings for our maintenance group while continuing the extremely high quality work we receive from Aeromexico,” Ed said in the release. “The facility is a natural next step for the two airlines as we leverage the full benefits of our alliance.”
In a memo to Delta TechOps employees, Tony Charaf, president-Delta TechOps, said Delta TechOps will own a 50% stake in the maintenance JV and invest in an expanded maintenance facility in Mexico.
“This is a significant milestone for Delta TechOpsmaintenance, repair and overhaul (MRO) business as we expand our global footprint into the Mexican and Latin American markets,” Tony said. “It will enable us to provide our customers in these regions with a maintenance facility that is nearby, provide a significant cost savings to Delta and at that same time allow us to explore further leveraging the high-quality airframe maintenance work that Aeroméxico provides Delta today. We also expect one of the additional benefits of this JV will be an opportunity for us to grow our MRO engine, component and APU work in Atlanta by leveraging the airframe work being accomplished through the JV.” The agreements announced Wednesday will significantly expand the alliance offerings between Aeromexico, owned by Groupo Aeromexico, and Delta. The carriers will expand a codesharing agreement beyond the 125 daily flights to include all flights between the countries on the carriers as well as selected flights beyond some hub airports, vastly increasing choices for customers.
The carriers’ best customers will have new benefits such as expedited call handling and new online capabilities to reserve seats. Future benefits contemplated include more online capabilities to book award travel and upgrades as well as co-location of airport facilities between the carriers.
Aeromexico’s strong financial performance since its recent financial restructuring makes the deal all the more attractive to Delta. After its successful public stock offering, Aeromexico has posted strong earnings, including its highest operating margin in 15 years during its June quarter.
“The expanded agreement with Delta will undoubtedly allow us to solidify the commercial alliance we have been building together for several years now,” said Aeromexico Chief Executive Officer Andrés Conesa said in the release. “We will work with Delta to offer more options for our customers, including greater access to Delta’s global network.”
