Aviation

The Delta LATAM joint venture has been approved by the DOT

  • Delta A350

    Delta Air Lines

    IATA/ICAO code:
    DL/DAL

    Airline type:
    A full-service carrier

    Hub(s):
    Boston Logan International Airport, Detroit Metropolitan Wayne County Airport, Hartsfield-Jackson Atlanta International Airport, Los Angeles International Airport, Minneapolis-St. Paul International Airport, New York JFK Airport, LaGuardia Airport, Salt Lake City International Airport, Seattle-Tacoma International Airport

    Year of foundation:
    1929 year

    Alliance:
    SkyTeam

    General Director:
    Ed Bastian

    country:
    United States

On Friday, the US Department of Transportation (DOT) approved the Joint Venture Agreement between Delta Air Lines and LATAM Airlines Group. The partnership will give passengers access to more than 300 destinations in the Americas, according to a statement.


JVA DOT approved

The Ministry of Transport has approved a joint venture between Delta and LATAM that will allow the airlines to improve the travel experience for their passengers and cargo customers by offering them new benefits, including improved service and more routes to be added to their codeshare routes. The JV should be implemented within six months.

SIMPLE VIDEO OF THE DAY

The two airlines first announced their partnership in 2019 after Delta invested in LATAM. The South American carrier ended its previous alliance with American Airlines and on the left onethe world is in shocking motion.

In 2020, Delta and LATAM introduced their first codeshare services in South America, and in 2021 expanded to more than 20 routes between USA and South America, as well as connections to a wide range of domestic and regional destinations from their hubs in Atlanta, New York and Los Angeles, Santiago, Lima, Bogotá and São Paulo, improving connectivity between the two regions.

DOT approves Delta and LATAM Joint Venture Agreement. Photo: Vincenzo Pace | Simple flight.

New possibilities

“Notably, the Department provides antitrust immunity to encourage flights that would not otherwise occur in order to provide consumer benefits that are otherwise unattainable.” the DOT said in an approval.

Ed Bastian, CEO of Delta Air Lines, said the joint venture between the two companies will help increase the market between North and South America. “We will now begin working with LATAM to transform the travel experience for all our customers and create new opportunities for our employees.”

According to both companies, the joint venture will provide new or expanded services on at least 18 non-stop routes, providing approximately US$460 million in annual benefits to consumers. Moreover, the approved partnership will allow Delta and LATAM to compete with American Airlines and United Airlines. According to airline estimates, they will be able to attract up to one million passengers annually and increase their capacity by more than 68%.

According to airline estimates, they will be able to attract up to one million passengers annually and increase their capacity by more than 68%. Photo: Vincenzo Pace | Simple flight.

Market share

According to Cirium, 3,545 weekly flights are scheduled between the United States and Latin America in September. American Airlines is the leading player in this market, operating 909 weekly flights and offering 148,945 seats. That’s 25% of the market share of just one airline.

United Airlines operates 594 weekly flights and offers 90,417 seats. Surprisingly, Volaris, the Mexican low-cost carrier, is the third largest airline in both regions, offering 281 weekly flights and 52,666 seats. Delta is fourth and LATAM is 13th.

“The DOT’s approval will kick-start our collaboration with Delta to provide more benefits to LATAM and Delta customers, such as faster connections and shared frequent flyer program miles, among many others. I am confident that over time we will be able to offer the best possible connections, while incorporating a sustainable view of the future.” said Roberto Alvo, CEO of LATAM Airlines Group.

What do you think about the approval of the Joint Venture Agreement between Delta and LATAM? Are you excited about it? Let us know in the comments below.

https://simpleflying.com/delta-latam-joint-venture-approved-dot/ The Delta LATAM joint venture has been approved by the DOT

Back to top button