Feb 28, 2017 02:39 PM EST
Delta Airline announced its plans to buy 32% of Aeromexico, which is the country's oldest and biggest airline. The upcoming purchase called on Feb.13 will bring Delta's total stake to 49% of Aeromexico's shares.
Following the announcement, Aeromexico's stock soars up to 16% while Delta's stock appeared at 2% in the afternoon of that day. The deal is still under regulatory approval in Mexico and the United States. Last December, Delta and Aeromexico launched its historic partnership to provide customers with substantial benefits in both nations as well as increase the services and jobs for both airlines.
Delta mentioned that it's not only investing in an airline but in a country's economy. "This new investment demonstrates Delta's confidence in Mexico's future and deepens our relationship with Aeromexico," Delta President Ed Bastian said in a statement. But with Trump's policy plans in effect, it cannot be denied that Mexico's future seems bleak.
The president considered a 20% tax on Mexican imports, a tax on Mexican remittances and further wants Mexico to pay for the border wall. Also, Mexico's peso hits an all-time low amid Trump's threats. On top of that, the government raised gas prices that caused a domino effect of higher prices for food and public transportation.
Although Delta and Aeromexico could face a tougher ride ahead, the partnership would still make sense in the long run. Mexico is the second largest country in Latin America with a countless number of tourists spots. In effect, this could help boost the weak peso by encouraging more U.S. travelers to head south and take advantage of a good exchange rate.
The partnership will also help Delta keep up with its U.S. airline competitors. For the past years, JetBlue, Spirit Airlines and Southwest have increased its number of flights and destinations in Latin America. Delta, on the other hand, has a remarked 1,300 weekly flights to Latin America and the Caribbean, flying 49 destinations.
Currently, a driver of a UK-registered car is allowed to drive anywhere in the EU, the EEA (European Economic Area), Switzerland and Serbia, and not have to carry a green card that proves you have insurance cover.
President Trump on Friday announced the first concrete deal with China to come out of nearly three months of trade talks - a deal to prevent currency manipulation.
Europe's largest economy offered mixed signals on Friday that suggest it's down but not out.
New research finds that despite regulations, CEOs control information release and may do so for their own financial gain
Normally, it's good to believe in yourself. But research from Indiana University's Kelley School of Business indicates that it can be bad advice for amateurs investing online in unregulated, sometimes risky, equity crowdfunded ventures.
Nearly half of new moms and a quarter of new dads leave their full-time STEM jobs after they have their first child, according to a new study.
Visa Inc and Mastercard Inc, the two biggest U.S. card networks, are preparing to raise certain fees levied on U.S. merchants for processing transactions from this April, the Wall Street Journal reported on Friday, citing people familiar with the matter.
People who travel for business two weeks or more a month report more symptoms of anxiety and depression and are more likely to smoke, be sedentary and report trouble sleeping than those who travel one to six nights a month, according to a latest study conducted by researchers at Columbia University's Mailman School of Public Health and City University of New York.
President Trump said Friday he is declaring a national emergency on the southern border, tapping into executive powers in a bid to divert billions toward construction of a wall even as he plans to sign a funding package that includes just $1.4 billion for border security.