Alliance between Delta and Aeromexico has green light

By Valeria Bigurra Tuesday, May 3, 2016 comments

Delta Aeromexico

This alliance was authorized under certain conditions


Through a press release it was announced that the Federal Competition Commission (Cofece) authorized the company Aeroméxico a joint cooperation agreement with Delta Airlines.


Delta AeromexicoStill taken from Aeromexico’s official website


In the statement sent to the Mexican Stock Exchange (BMV), Aeroméxico said that one of the conditions imposed by the Cofece was the transfer of eight pairs of slots (takeoff and landing times).


The Mexican airline explained that this decision taken by the Federal Competition Commission in Mexico is part of the processes to deepen the trade alliance that both airlines have had for more than 20 years, in order to offer more travel options and destinations for passengers of both countries.


On April 26, 2016, the Senate confirmed the agreement on air transport between Mexico and the United States, which will remove the limitations on the number of airlines that can fly between the two countries.


It was in November 2015 when Delta announced its intention to increase its stake in Aeroméxico Group up to 49%. The alliance between the two airlines is valued at one thousand 500 million dollars.


Delta currently has a 4.1% stake in Aeromexico, with an option to purchase an additional 8.1%, plus the pension fund of the US airline owns 4.6% of the shares of Aeroméxico.


The acquisition of these shares will be through a tender offer at a price of 43.59 pesos per share.