At the end of September, it was announced that the planned joint venture between American Airlines and LATAM would not be going ahead. The decision to not go ahead with a joint venture followed after both airlines failed to find a solution to a ruling by the Chilean Supreme Court earlier in the year. Now, LATAM will move ahead with a partnership with Delta. They are also leaving the oneworld alliance.
LATAM to Leave Oneworld
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. They also 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.
In an official statement oneworld released they said:
LATAM advised oneworld earlier today of their decision to partner with an airline outside of the oneworld alliance. LATAM further advised oneworld that they intend to leave the alliance in due course and in accordance with formal contractual requirements. We are disappointed, but we respect their decision. They have been a valued long-term member of the alliance, and we wish them well.
LATAM also confirmed their departure from the oneworld alliance that will happen on October 1, 2020. However, they did not release an official statement, just a notice on the Qantas website:
LATAM has given notice that they will exit oneworld on 1 October 2020. Until this date passengers will continue to receive the oneworld benefits associated with LATAM’s membership. However, Qantas passengers making new bookings for travel from 1 October 2020 will no longer earn Status Credits.
That means that following October 1, 2020, passengers flying with LATAM will not be able to credit their flights to airline programs. They will also not be able to redeem any oneworld benefits. It is still unclear if LATAM will join the Delta SkyTeam alliance or will they remain unaligned.
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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]
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