Republic
Topic Author
Posts: 541
Joined: Thu Dec 27, 2012 12:39 am

Delta Looking To Buy Part Of AeroMexico

Fri Apr 06, 2001 12:40 pm



Thursday April 5, 9:22 pm Eastern Time

Delta says interested in Aeromexico stake

MEXICO CITY, April 5 (Reuters) - Delta Air Lines Inc. (NYSE:DAL - news) would be interested in acquiring a stake in its Mexican partner Aeromexico, Delta's chief executive officer Leo Mullin said on Thursday.

Mullin said Delta wanted to invest in the airline as Mexico's government breaks up the holding company Cintra , which controls the country's two main airlines, Aeromexico and Mexicana de Aviacion.

``We would anticipate an investment on Delta's part in Aeromexico's shares,'' Mullin told Reuters in Mexico, where he met with Aeromexico executives and government officials.

Aeromexico is one of Delta's partners in its ``SkyTeam'' global alliance and Mullin said other alliance members -- especially Air France -- might join it in the Aeromexico investment.

The sale of Cintra was ordered by a Mexican anti-monopoly commission last October. The details and timing of the sell-off have not been finalized but are expected to include limiting foreign investors to 25 percent in either Aeromexico or Mexicana.

``If that were the amount of shares sold to a foreign partner, we would definitely be interested in a stake of that size,'' Mullin said, pointing to a 17 percent growth in U.S.-Mexico trade last year and a seven percent increase in airline passenger numbers.

``We see a wonderful trend taking place here and Mexico will very soon be the United States' major trading partner,'' Mullin said.

He said Delta was not interested in investing in Mexicana de Aviacion, which is a partner of United Airlines (NYSE:UAL - news) in the global ``Star Alliance'' network.

Mullin said he expected other foreign carriers to look at investing in the two Mexican airlines.

``Mexico is a very attractive country so I would anticipate interest from other parties.''

(Kieran Murray, Mexico City newsroom +525 282-7153, mexicocity.newsroom@reuters.com)



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Copyright © 2001 Yahoo! Inc.


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Now, the question is, will UA buy a stake in Mexicana?

Rgds,
Joe
 
deltaflyertoo
Posts: 1479
Joined: Tue Nov 14, 2000 3:18 pm

RE: Delta Looking To Buy Part Of AeroMexico

Fri Apr 06, 2001 1:29 pm

What is AeroMexico like to fly? Is it normal, nice, or nasty?

I've noticed they fly a lot of MD-80s into LAX from Mexico, vs. Mexicana's Airbuses and 757s.

Anyone flown them?
 
LatinPlane
Posts: 2471
Joined: Mon Dec 27, 1999 11:05 am

RE: Delta Looking To Buy Part Of AeroMexico

Sat Apr 07, 2001 2:00 am


The airlines will go to the highest bidder. AA has already expressed interest in purchasing one carrier. Delta is sure to bid as much as possible for AM. They will loose to much if they loose them to someone else.

It makes me wonder wether United will be keen to battle it out with other bidders when at the current moment it is having too many of it's own problems. And if the U.S. Airways deal is approved then it's going to cost the airline a great deal. Don't know if that would be of benefit to Mexicana. Maybe Lufthansa will bid for Mexicana. Who knows now!

Best regards,
A. Diaz
Pan Am - The World's Most Experienced Airline.
 
rojo
Posts: 2254
Joined: Tue Sep 05, 2000 6:08 am

RE: Delta Looking To Buy Part Of AeroMexico

Sat Apr 07, 2001 11:57 am

Yeap, Leo Mullin just came to talk to Alfonso Pasquel (Aeromexico´s CEO) and to some congressman to let them know their interest in AeroMexico.
I know Delta wants to invest in AeroMexico in order to continue as a SkyTeam partner and every newspaper had a post, today, on Leo Mullin´s visit. We will see what happends with both mexican flag carriers soon.

Deltaflyertoo:

Flying in AeroMexico sometimes is better than flying in some US Airlines. Service is quite good and the crew is always friendly. I really enjoy flying with them. Try them some time!!!

Rojo
 
Republic
Topic Author
Posts: 541
Joined: Thu Dec 27, 2012 12:39 am

RE: Delta Looking To Buy Part Of AeroMexico

Sat Apr 07, 2001 12:40 pm

Recognizing Continental's focus on Latin America, do you think a stake in either Mexicana or AeroMexico makes any sense?

With UA tied up with the US deal, and AA having just absorbed TW, might it be possible for CO to acquire an interest in either? CO has made major commitments in Latin America, with their significant route network in Mexico, and their 49% ownership interest in Copa. Here is a great opportunity to add to this powerful and profitable strategy.

Rgds,
Joe
 
rojo
Posts: 2254
Joined: Tue Sep 05, 2000 6:08 am

RE: Delta Looking To Buy Part Of AeroMexico

Sun Apr 08, 2001 7:32 am

Republic

Be sure that Continental will be in the bidding process for AeroMexico and Mexicana. The four airlines interested in getting 25% of AM and MX are American Airlines, Continental Airlines, Delta Airlines and United Airlines.

Rojo
 
JAVOMD88
Posts: 285
Joined: Sun Aug 27, 2000 3:17 pm

RE: Delta Looking To Buy Part Of AeroMexico

Sun Apr 08, 2001 3:13 pm

GO SKYTEAM!!!!!!!
GO AEROMEXICO!!!!!!!!!!!!!!
GO DELTA!!!!!!!!!!!!!!!!!!!!!!!
GO AIR FRANCE!!!!!!!!!!!!!!!!
GO KOREAN!!!!!!!!!!!!!!!!!!!!!
GO CSA!!!!!!!!!!!!!!!!!!!!!!!!!!

AND MORE TO COME!!!!!!!!!!

GREETINGS FROM JAVO.
aeromexico.....the only true carrier of mexico
 
MX727
Posts: 121
Joined: Tue Feb 20, 2001 4:11 pm

RE: Delta Looking To Buy Part Of AeroMexico

Sun Apr 08, 2001 6:08 pm

Delta buyng Aeromexico sounds great
United buying Mexicana sounds great.
But God saves us from AA and CO.