DELTA Air Lines has acquired a 20% stake in airline holding company LATAM Airlines Group for US$1.9 billion (A$2.81 billion), which DL claims will combine “the strengths of the leading airlines in North and Latin America”.
As part of the purchase, Delta revealed it would also make a significant cash injection into its new partner airline, including US$350 million to support the “establishment” of the deal.
Delta has also agreed to acquire four A350 aircraft from LATAM, in addition to buying 10 more of its A350 aircraft to be delivered between 2020-2025.
LATAM’s executive structure will also change under the terms of purchase, with Delta to be represented at the board level.
The deal has led to LATAM walking away from oneworld membership, with the airline alliance stating it was “disappointed” to learn of LATAM’s move but respected its decision to do so.
Aussie carrier Qantas has also been quick to clarify the deal will not affect its codeshare arrangements with LATAM.
“Qantas and LATAM have agreed that the bilateral agreement we have works well for customers and we will look for opportunities to enhance it in future,” a spokesperson for the airline said.
The news is a blow to American Airlines which had been pursuing a JV agreement with LATAM.
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Source: traveldaily