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Delta / LATAM Partnership (Consolidated Thread)

Delta / LATAM Partnership (Consolidated Thread)

Old Sep 26, 19, 2:55 pm
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Delta / LATAM Partnership (Consolidated Thread)

https://www.cnbc.com/2019/09/26/delt...t-airline.html

Didnít see this coming...
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Old Sep 26, 19, 2:59 pm
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Wow...!

LATAM leaving Oneworld
Delta dropping Gol
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Old Sep 26, 19, 3:04 pm
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Well this is a huge surprise. And Delta must have sent jaws dropping in Dallas. AA must have been blindsided by this, given they were working on a JV. No doubt that is DOA.
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Old Sep 26, 19, 3:05 pm
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And this is a stunner too:

As part of the deal, Delta will acquire four Airbus A350 planes and assume LATAM’s commitment to buy 10 more A350s between 2020 and 2025.
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Old Sep 26, 19, 3:06 pm
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this is ... fairly seismic.
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Old Sep 26, 19, 3:21 pm
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I thought this was spam at first. So much was said in that article, I'm not sure which is more surprising right now.

Between the new jets, LATAM leaving OW, dropping GOL, the purchase. How were they able to keep all of this under wraps???
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Old Sep 26, 19, 3:26 pm
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As someone traveling to Latin America often and having to rely on AA poor operations, these are great news.
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Old Sep 26, 19, 3:29 pm
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What a total power move — make OneWorld irrelevant in South America, even worse than it was in China before China Southern left SkyTeam. And Delta shows Gol the door with hardly a thought. The suits in Brazil have to be in panic mode as well. Presumably we'll see a DL-LATAM JV in the short-term, and possibly a great deal more flights from DL hubs to South America. This is just jaw-dropping.
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Old Sep 26, 19, 3:33 pm
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I feel sorry for GOL. They were a nice little airline IMLE = in my limited experience.

Plus, I have the vague impression that LATAM is pretty messed up.

Can we assume that AR is still a SkyTeam partner?
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Old Sep 26, 19, 3:35 pm
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As a DL FF who is based in Lima, this is very exciting for my travel in the region. Hooray!
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Old Sep 26, 19, 3:37 pm
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Originally Posted by MSPeconomist View Post
I feel sorry for GOL. They were a nice little airline IMLE = in my limited experience.

Plus, I have the vague impression that LATAM is pretty messed up.

Can we assume that AR is still a SkyTeam partner?
Delta doesn't have the power to kick an airline out of SkyTeam, so AR is still in. But I've heard lots of how much of a mess AR is, so no guarantees there.

From reading about this deal, it does a lot to fix the LATAM mess. Cleans up their balance sheet, removes some of the planes they were committed to, but didn't need and couldn't afford. And, of course, all the sudden they'll get access to all of the staff/expertise Delta has to remake their operation.
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Old Sep 26, 19, 3:39 pm
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This new AJC article talks about Delta beefing up Ops at LATAM's hubs and specifically talks about beefing up Ops at Miami?!

But the article also mentions that the AA LATAM JV was struck down in Chile and that in order to get a DL JV they'd need to get rid of GOL.
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Old Sep 26, 19, 3:42 pm
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I wonder what Delta's plans are for the 14 new A359s? They already deferred 10 deliveries to 2025, so are these going to go to existing routes or new ones in the works?
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Old Sep 26, 19, 3:48 pm
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Originally Posted by eneq View Post
I wonder what Delta's plans are for the 14 new A359s? They already deferred 10 deliveries to 2025, so are these going to go to existing routes or new ones in the works?
Presumably some of them will allow Delta to launch new routes between its hubs and LATAM hubs in S. America. Delta's still relatively weak in South America, but this should allow several new routes to be launched every year for several years. It really makes Delta a player in South America in a way it has never been before.

Edit: Ed Bastian pretty much guarantees this in the AJC article: https://www.ajc.com/business/delta-s...3DH7mu2Nf4rSO/

“South America is one part of the world where we’re not well represented,” Delta CEO Ed Bastian said during an interview with The Atlanta Journal-Constitution. “The hubs that LATAM has in Sao Paulo and Santiago, Chile and Buenos Aires and Lima and Bogota – those are all rich markets, growing markets, markets that are not well served by Delta today.… Those will be the main areas we’ll be growing.”
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Old Sep 26, 19, 3:52 pm
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Originally Posted by jrkmsp View Post
Presumably some of them will allow Delta to launch new routes between its hubs and LATAM hubs in S. America. Delta's still relatively weak in South America, but this should allow several new routes to be launched every year for several years. It really makes Delta a player in South America in a way it has never been before.
Very true. I could see them moving some of the smaller wide-bodies to the SA routes and use the new A359s on the prestige TATL routes.
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