Mexican carrier Aeromexico has signed a binding letter of intent (LoI) with AIMIA over proposed changes to shareholder and commercial agreements (CPSA).
The LoI is dependent on certain commercial and financial terms’ negotiation.
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The CPSA agreement is between Aeromexico and PLM Premier, which is the Club Premier loyalty programme operator.
The proposed changes include an extension of CPSA for 20 years, PLM to provide $100m in financial support to Aeromexico and a seven-year option grant to Aeromexico to purchase AIMIA’s stake in PLM.
Aeromexico CEO Andres Conesa said: “Aeromexico is also committed to these transactions that reset the relationship between PLM shareholders and to taking strides on many fronts to strengthen the relationship between Aeromexico and PLM/Club Premier.
“We believe that, by working together with our joint venture partner AIMIA and the commercial teams at Aeromexico and PLM, we can ensure a bright future for Club Premier and its members and participants.
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By GlobalData“We also appreciate the financial support offered by our partners as we implement our strategy to emerge from the challenging situation currently faced by the global airline industry.”
PLM will use a $50m intercompany loan and advance award ticket purchases of $50m for the proposed financial support to Aeromexico. These will be funded by PLM’s cash on hand.
Additionally, Aeromexico will purchase 48.9% of AIMIA’s equity interest in PLM with $400m ‘minimum floor’.
The deal is based on a final agreement on certain terms and conditions.
