Originally Posted by
tsquare
Ummmmm and since when did Aeromexico need DAL's permission to fly from MEX to LHR, NRT, etc etc etc?
Did you actually THINK about this post, or were you just venting?
We have a seat on the Aeromexico BOD and are a significant holder of AeroMexico's preferred shares. We coordinate schedules, marketing and even manage facilities so as to make it easy for our passengers to walk from our RJ's to our "partner's" airplanes.
So, no. They probably did not need our "permission." More likely it was "our idea." We don't separate our Aeromexico's investment results from our own. We show this as "improved passenger revenue." IMHO, alter ego.
Aug 10, 2011
ATLANTA and MEXICO CITY, Aug. 10, 2011 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) and Grupo Aeromexico (Mexico: AEROMEX.MX) today announced a tentative agreement for a long-term, exclusive commercial alliance. Under the agreement, Delta and Aeromexico will expand cooperation to leverage each other's strengths and link Delta's expansive network with Mexico's largest passenger network. As part of the agreement, Delta also will invest $65 million in Aeromexico. ...
(and follow up news) ....
Aeromexico (AM) on Wednesday announced it has signed a letter of intent for up to 100 Boeing aircraft—a mix of 90 737 MAX 8s and 9s, as well as 10 787s. When finalized, the order will be worth $10.8 billion at list prices, according to a statement by both companies.
The MAX aircraft will be powered by CFM International LEAP-1B engines—the sole source engine for the MAX. CFM said the list value of the LEAPs was $2.25 billion. Deliveries of the 737-8 MAX aircraft will begin in 2018, according to AM.
The 787s will be powered by GE Aviation GEnx-1B engines. GE said the total list value of the deal was $400 million. The Rolls-Royce Trent is also available for the 787.
Grupo AM CEO Andres Conesa said the order “will allow us to maintain a flexible structure to grow according to market conditions.”
The commitment for 100 aircraft is in addition to a package of 10 Embraer E190s and 10 leased Boeing 737-800 the carrier announced in 2011, as well as nine 787-9s scheduled to begin deliveries insummer 2013, AM said. It has already leased five 787-8s from International Lease Finance Corp (ILFC) and ordered two from Boeing (ATW Daily News, March 30). In July, it announced it would receive$171 million in Export-Import Bank (Ex-Im) financing to support the acquisition of 737s (ATW Daily News, July 3).
My guess is that our strategy is to put the risk of these route expansions off of Delta's balance sheet. AeroMexico likely also has a cost advantage on us.