49% Stake in Aeromexico
2016
$830M
Why
Delta made a series of investments in Aeromexico beginning in 2011 and increasing its equity stake to 49 percent by 2016, as part of a strategy to build a vertically integrated North American aviation network that would provide seamless connectivity between the United States and Mexico. The investment aligned with a joint cooperative agreement approved by the U.S. And Mexican governments that allows Delta and Aeromexico to coordinate routes, share revenue, and offer reciprocal frequent flyer benefits without the restrictions that typically govern carrier cooperation.
Impact
The Aeromexico partnership gives Delta access to Mexico's primary airline and its extensive domestic Mexican network, enabling Delta to offer itineraries from U.S. Cities to Mexican destinations beyond the primary gateway airports that Delta's own metal serves. The joint cooperation agreement allows coordinated pricing and scheduling on U.S.-Mexico routes, improving capacity discipline and yield on a bilateral market that is one of the world's largest international aviation relationships by passenger volume.
Outcome
Aeromexico filed for Chapter 11 bankruptcy in the United States in 2020 during the COVID-19 pandemic and emerged from reorganization in 2021. Delta maintained its equity interest through the reorganization and continues to operate the joint cooperation agreement. The partnership remains a core element of Delta's Latin American network strategy.