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STRATEGIC ACCORD BETWEEN AEROVIAS DE MEXICO AND MEXICANA DE AVIACION

 MEXICO CITY, Feb. 17 /PRNewswire/ -- Mr. Gerardo de Prevoisin, chairman of the board of Aerovias de Mexico (AEROMEXICO) announced today that a complete accord has been reached on a swap of shares of Aeromexico for the majority of the shares of Corporacion Falcon, which holds the majority of the shares of the board of Corporacion Mexicana de Aviacion (MEXICANA).
 The association between the two airlines began with shared ramp services. Endorsed by the authorities it has since resulted in SEAT (Servicio de Apoyo Terrestre or Ground Support Services). It constituted the basis for finding new strategic alliances that will generate important synergies and economies in costs, thereby making better use of personnel of the companies and of the fleets.
 "To give permanence to such alliances," stated Mr. de Prevoisin, "the creation of a common interest between the principals of both companies made sense. On that basis, five premises for further negotiations were established:
 1 -- The companies would continue to compete but rationalize the use of fleets, and transmit to passengers benefits derived from the agreement.
 2 -- To comply with the objective of establishing transportation linkages across the country, no domestic route would be canceled.
 3 -- The minority interests of other shareholders would be respected.
 4 -- Each company would maintain its legal structure.
 5 -- The contemplated action requires that the SCT (Secretary of Communications and Transportation) authorize the sale or swap of shares according to the terms of the law of the SCT.
 "We think that in short this operation will be authorized, since the SCT has been kept closely informed of this negotiation and now only the formal petition for approval has been made," continued Mr. de Prevoisin. he added, "The official announcement will be made by the SCT as soon as it has reviewed the accord and considered its merits."
 Mr. de Prevoisin further stated that each company will have its own board of directors and director committee, and that there will be one chairman/chief executive officer for both companies.
 Aeromexico will focus on the international market and on business travel in the United States, Europe, Asia and South America. Mexicana will continue to focus on the tourist market, particularly in Mexico, the United States and Central America.
 Synergies and economies of scale should result in the systems of reservations and distribution, computers, aviation maintenance, special equipment, purchases and inventories of parts and repairs, administration of mileage clubs, areas of finance and control, air cargo, flight control, ticket offices, training, etc.
 Mr. de Prevoisin cited his great appreciation of the dedication and effort of the personnel of Aeromexico, which has permitted its taking of market leadership, and now results in this important alliance.
 In addition, he thanked the authorities and the business partners of Aeromexico and Mexicana for the vote of confidence that they have placed in the administration over which he presides. He reiterated his commitment to satisfy the expectations of passengers, travel agents, suppliers, shareholders, and above all, to face the historical challenge that globalization is offering to Mexico insofar as it pertains to the development of commercial aviation in that country.
 -0- 2/17/93
 /CONTACT: C. Brian Maddox of Georgeson & Co., 212-440-9862, for Aeromexico/


CO: Aerovias de Mexico; Mexicana de Aviacion ST: IN: AIR SU: TNM

KD -- NY056 -- 7592 02/17/93 18:49 EST
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Publication:PR Newswire
Date:Feb 17, 1993
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