Delta plans to improve its partnership with LATAM, a South American airline, in the near future. Friday, the U.S. Department of Transportation gave its final permission to the Atlanta-based carrier and its South American partner, LATAM. LATAM is an international company with main offices in Chile, Brazil, and other Latin American countries. Here you will read details relating to Delta and LATAM joint venture approval. They are going to upgrade flyers and some other things.
The new agreement between Delta and LATAM will see the two airlines sharing profits from transcontinental routes. The airlines will be able to work together on schedules and prices in certain markets because of the deal’s antitrust immunity.
Delta CEO Ed Bastian said in a statement, “We commend the DOT for this final approval, as our cooperation with LATAM will help grow the market between North and South America and bring significant and much-needed advantages to customers.” Together with LATAM, we can better serve our clients and provide our staff with more career prospects.
The announcement on Friday is not unexpected because the DOT gave the agreement its tentative clearance back in June and very nothing could have happened to stop the deal since then.
You can also read these articles relating to ventures:
- Venezuela Seizes Russia-linked Firm’s Oil Venture
- Elev8 Venture Partners Launches $200m Sector-Agnostic Growth Fund
- Intersection Between Climate Technology and Global Venture Capital
A provision of the joint venture agreement concerning the percentage of additional flights that Delta would be authorized to add was cut after concerns were raised by Delta’s pilot union. The DOT ruled against the Air Line Pilots Association, arguing that extra flights from LATAM would result in more flights from Delta.
The announcement on Friday is the culmination of a process that started almost exactly three years ago. LATAM surprised the airline industry in September 2019 by abandoning its U.S. partner American Airlines and exiting the Oneworld alliance to form a new partnership with Delta. Delta, despite LATAM’s Chapter 11 bankruptcy under the U.S. bankruptcy code, invested 20% in the airline and reaffirmed its commitment during the COVID-19 pandemic. In the coming months, LATAM will complete the Chapter 11 process and emerge from bankruptcy.
Codesharing and mutual frequent flyer program advantages are already available to customers of Delta and LATAM. As time progresses, Delta says the JV will continue to improve.
Keep following ventutejolt.com for more updates. Don’t forget to bookmark our site for more updates related to ventures. You can also share your views regarding this article in the comment section.