Originally Posted by
notEnuf
The Aeromexico investment was definitely not a mistake. They (we) own half of the dominant Latin carrier and what amount to a country's flag carrier. People will fly them without ever considering their Delta affiliation. This is about global consolidation, not just 1 JV.
Not only that, but the "long game" with this is IMO the gateway/hub model that really only requires one airport. Regardless of how bad Mexico gets relative to organic demand, if we (the corporation) can lock in MEX (possibly others) as a literal "fortress hub" with 787's etc then we (the corporation) can redirect lift to OAL pilots instead of our own. Best case its bet hedging and worst case its a relief valve for high cost labor.
Not sure they really regret the AM investment. When viewed in context of the unfathomable billions lit on fire for buybacks that have barely moved the needle, in this hyper cyclical industry we're more likely to rue the day we burned billions for nothing than we are to regret the AM investment.