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DL to acquire 20% LATAM; LA to exit OW

DL to acquire 20% LATAM; LA to exit OW

Old Sep 26, 2019, 3:17 pm
  #1  
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DL to acquire 20% LATAM; LA to exit OW

This just hit the wires:

"Delta is buying 20% of LATAM, Latin America’s largest airline"
https://www.cnbc.com/2019/09/26/delt...t-airline.html

DL to buy 20% of LATAM, will divest its stake in GOL. LA will exit OW, but unclear if it will join Skyteam.

Regards
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Old Sep 26, 2019, 6:08 pm
  #2  
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Oneworld new link--->https://www.oneworld.com/news/2019-0...ement-on-LATAM

And link to https://www.executivetraveller.com/ (was ausbt.com.au) They are usually well informed
https://www.executivetraveller.com/n...world-alliance

Will be a loss to the OneWorld alliance. Especially for *ONE* RTW tickets and visiting IPC Easter Island

Edit
Threads in the
LATAM forum thread---> https://www.flyertalk.com/forum/lata...-leave-ow.html
DL forum thread---> https://www.flyertalk.com/forum/delt...ake-latam.html
AA forum thread---> https://www.flyertalk.com/forum/amer...aa-impact.html
BA forum thread---> LATAM leaving OneWorld [30 April 2020]

Last edited by Mwenenzi; Feb 1, 2020 at 3:45 pm Reason: Links edited
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Old Sep 27, 2019, 6:17 am
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Very sad. There will be a big OWE void in South America. Hope someone comes in to fill this void.
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Old Sep 27, 2019, 6:52 am
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Originally Posted by jgchiker
Very sad. There will be a big OWE void in South America. Hope someone comes in to fill this void.
Who would that be? This is a huge blow for OW.
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Old Sep 27, 2019, 7:59 am
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It's a turbulent time for OW (also for ST in some extent).

Along with main carriers like AA's and BA's operations and services going downhill fast, as well as QR also likely to exit due to non-cooperation between member airlines, something will have to be done else the global alliance model will fall apart soon.

As for a new partner, I guess they can reach out to GOL but they can at best connect from Brazil, but not from Chile and Peru.
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Old Sep 27, 2019, 2:02 pm
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It doesn't seem unlikely that Cathay too might exit. If that happens I think OW as a global alliance will be done.
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Old Sep 27, 2019, 5:22 pm
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Originally Posted by gordon0808
It doesn't seem unlikely that Cathay too might exit. If that happens I think OW as a global alliance will be done.
That has been rumored, literally for years (same w/Qatar). The funny thing about this move with DL/LATAM is, to my knowledge, it was not rumored at all, ever. Totally out of left field.

As a OW flier I'm disappointed, but honestly this was a master stroke by Delta.

Regards
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Old Sep 27, 2019, 6:34 pm
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Originally Posted by gordon0808
It doesn't seem unlikely that Cathay too might exit. If that happens I think OW as a global alliance will be done.
This has been for YEARS literally and it still didn't happen. CX is clearly not regarded as tightly connected to CA based on recent events.
For *A, it makes no sense to cooperate with SQ, BR, NH where CX mainly serves; The entire *A is already too big, but when literally every one is either "DL alliance" or *A at some point, there will be no alliance at all.
ST makes even less sense now given DL's new approach.
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Old Sep 28, 2019, 3:00 am
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Very sad news. As others said, this leaves a huge gap ...

There might be candidates to fill it, in particular GOL. Frankly, I value them higher on domestic/regional routes, compared to Latam and perhaps AA wants to by the DL share one sale ...
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Old Sep 28, 2019, 3:20 am
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Is there any chance that the DL-LA JV and / or the investment will be blocked by court, so LA will stay in oneworld?
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Old Sep 28, 2019, 7:34 am
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Originally Posted by ernestnywang
Is there any chance that the DL-LA JV and / or the investment will be blocked by court, so LA will stay in oneworld?
Slim.

The impact to MPC members is small though. Looks like DL was mainly targeting at AA, so BA/QF/IB codeshares are still in place. I am not sure if MPC could ticket those flights and how the availability would change after LA is under DL. And of course, secondary routes are now a big hole in S America.
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Old Sep 28, 2019, 8:51 am
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Originally Posted by andersonCooper
Slim.

The impact to MPC members is small though. Looks like DL was mainly targeting at AA, so BA/QF/IB codeshares are still in place. I am not sure if MPC could ticket those flights and how the availability would change after LA is under DL. And of course, secondary routes are now a big hole in S America.
Well, I have never been to Latin America, and I always thought that this is something I can do "in the future." Sure, I can do it anytime, but my oneworld status might not mean anything by the time I can visit Latin America.

Plus, if DL seems to have a tendency to ask SkyTeam members to cut ties with CX, i. e., MU and VN. We don't know yet if LA will join SkyTeam.
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Old Sep 28, 2019, 8:55 am
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Initially I wasn’t too worried as my assumption was the QF/LA joint venture, codeshares etc would largely stand. Then I remembered DL has a fair stake in VA and I assume would want their new partner to work more closely with their existing partner rather than the competition

there’s not a huge amount of clarity but I am now basically planning a big South America trip for pre September next year just in case 😂
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Old Sep 28, 2019, 11:40 am
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Originally Posted by gordon0808
Who would that be? This is a huge blow for OW.
I don't know know if they would be accepted, but I could envision that Aerolineas Argentinas, which only started partnering with DL in the last couple years, might be upset about DL joining forces with bigger LATAM and might want to move from SkyTeam to OW once LATAM exits OW.
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Old Sep 28, 2019, 12:45 pm
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off topic

Originally Posted by nancypants
Initially I wasn’t too worried as my assumption was the QF/LA joint venture, codeshares etc would largely stand. Then I remembered DL has a fair stake in VA and I assume would want their new partner to work more closely with their existing partner rather than the competition

there’s not a huge amount of clarity but I am now basically planning a big South America trip for pre September next year just in case ��
You may be thinking of DL - VS (Virgin Atlantic). DL does not have a major shareholding in VA Virgin Australia
https://en.wikipedia.org/wiki/Virgin_Australia_Holdings
Owner
Etihad Airways (20.94%)
Singapore Airlines (20.09%)
Nanshan Group (19.98%)
HNA Group (19.82%)
Virgin Group (10.42%)
That is 91.25% The rest is on the ASX

on topic
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Last edited by Mwenenzi; Sep 28, 2019 at 1:27 pm
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