Delta to Acquire Part of Aeroméxico’s DebtBy Jorge Ramos Zwanziger | Fri, 07/02/2021 - 18:36
Delta Air Lines announced it will support Aeroméxico by acquiring part of the latter’s debt to Apollo Global Management. Aeroméxico and Delta Air Lines have collaborated for several years and recently celebrated the anniversary of their Joint Collaboration Agreement.
“Delta Air Lines intends to exercise its option to acquire US$185 million of Apollo’s credit rights in the second tranche of the DIP loan Apollo made to Aeromexico,” unnamed sources told Bloomberg. Aeroméxico had been approved for a US$1 billion DIP loan from investment firm Apollo Global Management, an agreement made after the COVID-19 pandemic led the company to file for Chapter 11 bankruptcy protection. Delta Air Lines has the right to acquire part of said debt for its preferential financing, which the company plans to do in the near future, said Peter Carter, Delta Air Lines’ Legal Director, in a letter to Javier Arrigunga, President of the Aeroméxico Board, reports A21.
A Relationship for the Ages
Recently, Aeroméxico and Delta Air Lines celebrated the fourth-year anniversary of their Joint Collaboration Agreement (ACC), a cross-border alliance between Mexico and the US that started in May 2017. Through the pandemic, both companies have worked to support each other. “For the past year, we have faced the pandemic working together and sharing our best practices to recover steadily. As a result of these efforts, this month we will operate approximately 3,800 flights, a recovery of 86 percent compared to the same period in 2019,” said Nicolás Ferri, Aeroméxico Commercial Executive Vice President, in a company press release.
Both companies aim to create the best travel experience for customers flying between the US and Mexico. “While the last 12 months have been challenging, Delta and Aeroméxico have never forgotten their commitment to continuously improve travel experiences, to offer the best service and the greatest connectivity for our customers when they fly between the US and Mexico,” said Alain Bellemare, Executive Vice President and International President of Delta Air Lines. "Together we will continue to innovate and offer products and services that will provide our customers with an improved experience, so they can sit back, relax and enjoy their return to heaven.”
Both airlines have made great efforts to fasten the recovery of the commercial aviation sector, which was hit hard by the COVID-19 pandemic. Recently, Aeroméxico announced the implementation of the International Air Transport Association’s (IATA) COVID-19 travel pass, which you can read more about here. This measure aims to provide flyers a secure travel experience to reduce their concerns while traveling.