$40 Million will be invested to build aircraft maintenance center in Queretaro state of Mexico Real Estate

In a joint investment venture, Grupo Aeromexico and Delta Air Lines have agreed to build and operate an aircraft maintenance, repair and overhaul, or MRO, center in the central Mexican state of Queretaro. $40 million is being invested in the project. In a joint statement issued it was stated that both the airlines will invest equal amounts in the facility, which will be used to service their respective fleets and those of other airlines.

$40 Million Boost to Airlines Industry in Mexico Real Estate Region

The MRO center will be setup at the Queretaro International Airport next to that state's Aerospace Park, Mexico' largest aerospace manufacturing cluster. Apart from building a new center, the project also involves moving the current MRO installations at the Guadalajara International Airport to the new facility. The new center is expected to be operational by 2013 with a capacity to service up to seven airplanes simultaneously.

"With the site selection, the joint efforts now move to begin constructing this facility that will usher in lower maintenance costs without compromising the very high quality work that Aeromexico provides Delta," Delta Air Lines President Ed Bastian said. For his part, Grupo Aeromexico CEO Andres Conesa said the Queretaro center represents one of Mexico's biggest aerospace investment projects in recent years.

The project is part of a memorandum of understanding that was signed in 2011 and included the purchase by Delta of a 4.17 percent stake in Aeromexico for $65 million.

Mexico airlines industry is growing at a frantic pace due to increase in the influx of tourists to its cities such as Cancun, Playa del Carmen, Los Cabos and Puerto Vallarta. To keep up with the pace, not only new flights are been introduced but also maintenance centers and manufacturing units are been set up

Grupo Aeromexico has four subsidiaries and offers 550 daily flights to different cities in Mexico, the United States, Canada, Central and South America, Europe and Asia. It recently announced the purchase of 100 Boeing aircraft.

Delta, the world's largest airline, transports 160 million passengers annually, employs more than 80,000 people and has a fleet of 700 aircraft.