Delta invests $65 million in Aeromexico

http://www.latimes.com/business/money/la-fi-mo-delta-invests-20120604,0,1760335.story

In a first for a Mexican airline, Delta Air Lines has bought about 4% of Aeromexico for $65 million, the two airlines announced Monday.

Under the deal, Delta owns 30.2 million Aeromexico shares at 31 pesos each. The deal also gives Delta a seat on the airline's board of directors.

Aeromexico is the largest airline in Mexico, based on passenger totals; Delta is the second-largest in the United States.

The two airlines described the investment as part of a larger effort over the last few years to strengthen a partnership between the carriers, according to a joint news release issued Monday.

The airlines already participate in what industry officials call code sharing, which means they can sell tickets for each other's flights to 93 destinations.

Both carriers also plan to invest in a maintenance and repair facility to open in Mexico next year, according to the news release.

Aeromexico stock dropped 1.7% Monday to 20.06 pesos a share. Delta stock dropped 11.6% to $10.18.