Delta airlines has just announced it will be expanding its footprint in South American by investing $1.9 billion into LATAM, securing them a 20 percent stake in Latin America’s largest airline.
Together, the two airlines will serve 435 destinations worldwide and carry more passengers between North America and Latin America than any other existing partnership.
Delta will also invest a further $350 million to support the establishment of the strategic partnership and will be represented on LATAM’s Board of Directors.
Qantas commented on the tie-up this morning, assuring customers that it would not result in any changes to their existing codeshare with LATAM.
“Qantas and LATAM have agreed that the bilateral agreement we have works well for customers and we will look for opportunities to enhance it in future,” Qantas commented.
The new partnership will see Delta acquire four A350 aircraft from LATAM while LATAM’s is purchasing 10 extra A350’s to be delivered beginning in 2020 through 2025, supporting Delta’s ongoing fleet transformation.
Chief Executive Officer of LATAM Enrique Cueto Plaza said the new alliance with Delta strengthened their company and enhanced their leadership in Latin America by providing the best connectivity through their highly complementary route networks.
“We look forward to working alongside one of the world’s best airlines to enhance the travel experience for our passengers,” he said.
Delta’s Chief Executive Officer Ed Bastian was equally positive about the opportunities it presented for them.
“This transformative partnership with LATAM will bring together our leading global brands, enabling us to provide the very best service and reliability for travellers to, from and throughout the Americas.”
Delta’s Chief Executive Officer Ed Bastian
The tender offer and alliance are still subject to closing conditions and governmental and regulatory approvals, including anti-trust immunity.
Both airlines expect the partnership will provide a more seamless travel experience and better connect customers with the rest of the world.
Share this story