Delta is planning to buy a 20% stake in Latin America’s largest airline

Posted on September 29, 2019 by in Air France/KLM Flying Blue, Delta Airlines, Travel News

Delta Air Lines on Thursday announced a deal to buy a 20% stake in LATAM Airlines Group for $1.9 billion. The proposed partnership with LATAM Airlines represents Delta Air Lines’s largest investment in a foreign carrier and is a competitive strike against American Airlines in Latin America.

The Delta deal

In recent years, Delta has expanded its ownership and relationship with other international carriers. It raised its stake in the parent company of Korean Air to 9.2%, announced a trans-border joint venture with Canadian airline WestJet and increased its ownership of Aeromexico, the largest airline in Mexico to 49%.

In addition to buying 20% of LATAM for $1.9 Billion, Delta will also be spending $350 million to expand its partnership with the carrier.

“This alliance with Delta strengthens our company and enhances our leadership in Latin America by providing the best connectivity through our highly complementary route networks.” LATAM’s CEO, Enrique Cueto Plaza, said when announcing the deal

The deal will allow Delta Air Lines to expand onto an $8 billion market for U.S. travel in which it has limited access now, resulting in much greater travel choices for customers and $1 billion in revenue over the next five years, Delta CEO Ed Bastian said Friday.

“That’s a revenue pull that we’ve not had meaningful access to.” Bastian said

American Airlines has been pursuing a partnership with LATAM, they were already connected through the OneWorld alliance of airlines. Such agreements allow carriers to sell seats on each other’s flights. They also allow passengers to earn and use miles on those airlines. LATAM will be leaving the OneWorld alliance.

The Airbus A350

An addition to the deal is the acquisition of the Airbus A350. Delta will acquire 14 Airbus A350 jets. Four of them will be planes currently operated by LATAM. The other 10 will come from taking LATAM’s future order with Airbus. Delta will receive two aircraft in late 2020 and the remaining 12 by 2025. Delta has publicly indicated its wish to operate more of the Airbus A350.

About the author: Mila Kostic is a native of Belgrade, Serbia. After majoring in sociology at the Belgrade University she has been working as tutor and coach. Prior to taking on her role at Mighty Travels, she wrote for a video games, fitness, and health lifestyle website. After starting her work with the Mighty Travels team she discovered her passion for travel and travel writing. Now, she is focused on bringing you the newest travel news. In her portfolio here at Mighty Travels, you can find articles on Airline news, hottest credit card deals, tips and tricks on earning miles and much more. You can reach her at [email protected]

This post has been tagged with:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

Don't miss - more topics from Mighty Travels

AAdvantage | Aegean Airlines | Aeromexico | Aeroplan | Air Canada | Air China | Air France | Air France/KLM Flying Blue | Air India | Air New Zealand | AirAsia | AirBnB | Airline Reviews | Alaska Airlines | Alaska Mileage Plan | Alitalia | American Airlines | American Express | American Express Membership Rewards | ANA | Asia Miles | Asiana Airlines | Avianca | Avios | Avis | Award Booking | Bank Bonuses | Best coffee | Best Rate Guarantee | Best Western | British Airways (BA) | Capital One | Cash Back Deals | Cathay Pacific Reviews | Chase Sapphire Reserve | Chase Ultimate Rewards | Cheap flights | Cheap Passport Photos | Cheap Visas | Checking Accounts/ Bank Bonuses | China Airlines Review | Choice Hotels | Choice Privileges | Citibank | Club Carlson / Radisson | Credit Card Deals | Currency Arbitrage | Delta Airlines | Delta Skymiles | Destinations & Inspiration | Emirates Reviews & Skywards | Error Fares / Mistake Fares | Etihad Reviews & Etihad Guest | Expedia Coupons | Fare Monitoring Service | Frequent Flyer Programs | Fuel surcharges | Getaround | Google ITA Matrix | Hainan Airlines | Hawaiian Airlines | HHonors | Hilton Honors | Hilton Hotels | Hotel Corporate Codes | Hotel Deals | Hotel Friends & Family Discounts | Hotel Loyalty Programs | Hotel Reviews | Hyatt | Iberia | IHG Rewards Club | Immigration & Airport Security | Immunization | Japan Airlines | Jetblue TrueBlue | Krisflyer | Lifemiles | Lounge Reviews | Low Cost Airlines | Lufthansa Miles and More | Malaysia Airlines | Manufactured Spend | Marriott Hotels | Mighty Travels Premium | Mileage Plus | Mistake Fares | Mountain Gorillas | Norwegian | Online Shopping Mall Deals | Orbitz Coupons & Deals | Priority Pass Lounges | Qantas | Qatar Airways | Radisson Rewards | Rapid Rewards | Ryanair | Saudia | Singapore Airlines | South African Airways | Southwest Rapid Rewards | Sri Lankan | StarHOT | StarwoodONE | ThankYou Points | Things to Do (City Guides) | TOP Travel Destinations | Travel Agent Rate | Travel Deals | Travel Insurance | Travel News | Travel Tech | Turkish Airlines Review | Uber | United Airlines | United Mileage Plus | World of Hyatt | Wyndham Hotels | Wyndham Rewards |