Grupo Aeroméxico, S.A.B. de C.V. ("Aeroméxico" or the "Company") (BMV: AEROMEX) informs that it, together with its subsidiary Aerovías de México, S.A. de C.V. ("Aerovías"), has entered into a binding letter of intent ("Binding LOI") with Aimia Holdings UK Limited and Aimia Holdings UK II Limited (jointly, "Aimia"), to assume full control the Club Premier (PLM) loyalty program in a transaction through which Aeroméxico will become the sole owner and operator of "Club Premier", the leading loyalty program in Mexico. Upon closing of the transaction, PLM will become a wholly-owned subsidiary of Aeroméxico (through Aerovías) ("Transaction").
Entry into the Binding LOI is part of the Company's Joint Plan of Reorganization ("Plan") that was confirmed by the Bankruptcy Court on January 28, 2022. The parties under the Binding LOI will prepare and execute the definitive agreements for the Transaction, reflecting the terms and conditions of the Binding LOI (the "Definitive Agreement"), which Definitive Agreement will be subject to customary closing conditions, including, among others, consummation of the Plan on its Effective Date and approval of the Transaction by the Mexican antitrust authorities. The Transaction is expected to close within six months of the Bankruptcy Court's order, entered on February 4, 2022, confirming the Plan.
Andres Conesa, CEO of Aeroméxico stated: "Today's announcement is another very exciting day for the Aeroméxico family and our Club Premier members. This is an important milestone in the Aeroméxico restructuring process and marks a major step forward as we continue our complete transformation of the Aeroméxico customer experience. We would like to thank Aimia for their collaboration and close partnership over the past decade. Since 2010, our joint vision has built Club Premier into one of the leading airline loyalty programs in Latin America. Aeroméxico customers will benefit from a more relevant and agile program that represents the best option to reward loyalty both on the ground and in the air in Mexico and around the world across all destinations Aeroméxico serves."
Phil Mittleman, CEO of Aimia, said: "We want to thank our joint venture partner, Aeromexico, for their collaboration in achieving the best outcome for all stakeholders. Aeromexico has been a valued and trusted partner since 2010, and we applaud them, and the PLM leadership team for continuing to successfully navigate an unprecedented period in the travel industry. We wish Aeromexico continued success as they emerge from the bankruptcy process as a significantly strengthened airline, supported by its loyalty program." Mr. Mittleman added, "The substantial cash proceeds from this transaction, combined with our existing cash, investments, and significant operating and capital losses, will optimally position Aimia to continue to capitalize on the best investment opportunities globally, and deliver strong returns to our stakeholders."