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Delta to buy 20% of LATAM for $1.9 billion in regional shake-up [LATAM to leave OW]

Delta to buy 20% of LATAM for $1.9 billion in regional shake-up [LATAM to leave OW]

Old Sep 26, 19, 4:05 pm
  #1  
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Delta to buy 20% of LATAM for $1.9 billion in regional shake-up [LATAM to leave OW]

  • Delta is planning to buy a 20% stake in Latin America's largest airline, LATAM.
  • It's a twist for American Airlines, which has pursued a joint-venture agreement with its code-share partner LATAM.
  • Delta said it would exit its minority stake in Brazilian carrier GOL, which competes with LATAM in the region.

https://www.cnbc.com/2019/09/26/delt...t-airline.html
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Old Sep 26, 19, 6:45 pm
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I can't imagine Latam will be staying in Oneworld for much longer.

For its Brazilian customers, it'll be their 3rd alliance in 6 years (TAM was part of Star Alliance prior to March 2014).
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Old Sep 26, 19, 6:48 pm
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Oneworld has already confirmed that LATAM will leave the alliance.
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Old Sep 26, 19, 7:24 pm
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Does anyone else agree that this really seems to have come out of the blue? The statement seems hastily written as though they're in shock!

oneworld statement on LATAM

26 September 2019

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.

Our priority at this time is to our customers and while LATAM remains a member of oneworld, the full customer benefits will continue to be delivered. As the transition continues, we will work to ensure a seamless experience for our customers.

oneworld remains a strong coalition of high-quality airlines. There has been significant progress in member airlines deepening their bilateral relationships, as evidenced by the recent regulatory approval of the American Airlines and Qantas joint business.
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Old Sep 26, 19, 11:39 pm
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Who wants to buy about 500K Latam miles 😅. They are leaving Oneworld and not going for Skyteam.

The good think is that i didnt even try to go for a status this year.
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Old Sep 26, 19, 11:57 pm
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This is a ridiculously painful blow to oneworld, losing connectivity on an entire continent, but for consumers it was a necessary evil to break their effectively-monopolistic stranglehold on the MIA-GRU-MAD triangle.
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Old Sep 27, 19, 12:53 am
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What would the contractual requirements be in terms of timelines?
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Old Sep 27, 19, 1:14 am
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Someone reported on the AA forum 12 months to severe ties with OW
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Old Sep 27, 19, 7:16 am
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so will LATAM be a part of any alliance?
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Old Sep 27, 19, 8:45 am
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Originally Posted by NOLAnwGOLD View Post
Someone reported on the AA forum 12 months to severe ties with OW
I hope this is true, I presume all previously ticketed reward flights with LATAM using British Airways Avios will be honored? I have a couple of flights next Jan and was also looking forward to checking out there lounges as one world sapphire member.
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Old Sep 27, 19, 9:12 am
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Originally Posted by ATCOlad View Post
I hope this is true, I presume all previously ticketed reward flights with LATAM using British Airways Avios will be honored? I have a couple of flights next Jan and was also looking forward to checking out there lounges as one world sapphire member.
Previous experience with changes in airline partnerships/alliances is that all issued award tickets are honored, but after the ability to get new award tickets is lost, it might not be possible to make changes to existing tickets except to cancel them. Changes due to cancellations and schedule changes in advance can also be problematic, although IROPs on the day of travel will be handled in the usual way, by the operating carrier.
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Last edited by MSPeconomist; Sep 29, 19 at 11:55 am Reason: Typos
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Old Sep 27, 19, 9:15 am
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Originally Posted by michael1023 View Post
so will LATAM be a part of any alliance?
They're not joining Skyteam at once, but my money's on that happening eventually. DL is divesting of its interest in GOL, which has current partnerships and codeshares with DL, so that would leave South America with AR as a Skyteam member and GOL as an indie partner. My guess is that Oneworld might look at GOL as a potential Oneworld Connect partner in the short run, maybe growing to membership in the long term. Or maybe AR eventually, depending on how their recovery goes. But any way you look at it, this is a huge loss for Oneworld in Latin America.
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Old Sep 27, 19, 5:29 pm
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If LATAM ends up in Skyteam, and Delta customers expect the same level of customer service from LATAM that they receive from Delta, they will be in for a RUDE awakening.
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Old Sep 28, 19, 3:49 am
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I won't really be sad to see the back of LATAM. This most certainly means I will stop flying with them completely moving forward. I had already moved the vast majority of travel away from them. Poor crew, terrible customer service and a lacklustre product pretty much sums up my experience. From Spain Iberia is invariably a better option, and flying domestically in Brazil or Argentina the benefits of flying LATAM were already very small. But for oneworld I think this signals a wider problem.
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Old Sep 29, 19, 11:57 am
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However, if DL/SkyTeam people are accustomed to AR's level of service, LATAM would be an improvement, right?

OTOH I have the impression that GOL is a very nice little airline, with generally good customer service and operational reliability, so it will indeed be missed as a DL/SkyTeam partner.
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