Delta acquires bigger stake in Aeromexico

Delta, which operates daily, nonstop flights from Wichita Eisenhower National Airport to Atlanta and Minneapolis, has increased its stake in Grupo Aeromexico. Delta said Monday that it successfully completed its cash tender offer to purchase an additional 32% of the outstanding capital stock of the parent company of Aeromexico for $53 a share – for a total of $620m. The Atlanta-based airline now owns 36.2% of the outstanding shares of Grupo Aeromexico and has options for 12.8% more for a total of 49% of the outstanding shares of the parent company of Aeromexico. Delta’s relationship with Aeromexico extends more than two decades, starting with a codeshare agreement in 1994. Such agreements allow an airline to sell another’s seats for travel on a route it doesn’t fly. In 2011, Delta said it entered into an enhanced commercial agreement with Aeromexico, followed in 2012 by Delta’s $65m investment in shares of Grupo Aeromexico. In the next few months, Delta and Aeromexico will enter into a joint cooperation agreement for flights between the US and Mexico, an agreement that has been approved by regulators in both countries. “This is yet another milestone that strengthens the Delta-Aeromexico relationship as we move toward implementing our joint cooperation agreement in the second quarter,” Delta CEO Ed Bastian said.<br/>