Delta's Bastian said the facility will "usher in lower maintenance costs."
MEXICO CITY - Delta Air Lines Inc. and Grupo Aeromexico SAB said they will build a maintenance, repair and overhaul center in the central Mexican state of Queretaro, bolstering that region's growing aerospace industry.
The facility at Queretaro Intercontinental Airport will replace one in Guadalajara and will have the capacity to service seven airplanes at a time, the two carriers said Friday.
The airlines will jointly invest as much as $50 million in the center, Aeromexico Chief Executive Andres Conesa said.
Ed Bastian, president of Atlanta-based Delta, the world's second-biggest carrier, said the facility will "usher in lower maintenance costs."
Queretaro, 130 miles northwest of Mexico City, already is home to a Bombardier Inc. aircraft fuselage plant, a General Electric Co. turbine engineering center, and factories of French airplane-engine maker Safran SA. Eurocopter, the helicopter unit of European Aeronautic, Defense & Space Co., is building an aircraft parts plant.
"It's excellent news for the region," said Luc Beaudoin, principal of AeroShores Management Consulting, which advises aerospace manufacturers on setting up operations in Mexico and has an office in Queretaro. "It's increasing the physical mass of aerospace activities."
For Mexico City-based Aeromexico, Mexico's largest airline by passengers carried, the repair center represents "a clear recognition of world-class quality and service Mexico offers through its skilled manpower," Conesa said.
Delta shares rose 1.2 percent to $8.65 in New York.