Partnership brings together the leading airlines in North America and Latin America, connecting the Americas to the world as never before.
Together, Delta and LATAM will hold the leading position in five of the top six Latin American markets from the U.S.
Together, the partners will serve 435 destinations worldwide and carry more passengers between North America and Latin America than any other partnership.
Customers will benefit from significantly expanded travel choices across the Americas and an industry leading customer experience.
Delta and LATAM Airlines Group S.A. have announced that they have entered into a strategic partnership that for the first time combines the strengths of the leading airlines in North and Latin America.
The strategic partnership will unlock new growth opportunities, building upon Delta’s and LATAM’s global footprint and joint ventures worldwide, including Delta’s existing partnership with Aeroméxico. With their complementary networks, Delta, LATAM and their partners will be able to offer access to a greatly expanded array of worldwide destinations. Together, the partnership will provide greater customer convenience, a more seamless travel experience and better connect customers with the rest of the world.
Delta will invest $1.9 billion for a 20 percent stake in LATAM through a public tender offer at $16 per share, to be funded principally with newly issued debt and available cash.
Delta will also invest $350 million to support the establishment of the strategic partnership.
Delta will acquire four A350 aircraft from LATAM and has agreed to assume LATAM’s commitment to purchase 10 additional A350 aircraft to be delivered beginning in 2020 through 2025, supporting Delta’s ongoing fleet transformation.
Delta will be represented on LATAM’s Board of Directors, further strengthening the relationship.
The tender offer and the strategic partnership are subject to customary closing conditions and all required governmental and regulatory approvals, including anti-trust immunity.
Delta expects that the transaction will be accretive to EPS over the next two years. In addition, the transaction will not impact the company’s existing financial commitments to shareholders, including free cash flow and shareholder returns. Delta also expects to remain within targeted leverage ratios.
For LATAM, the transaction will improve free cash flow generation, reduce forecasted debt by over $2 billion by 2025 and improve LATAM’s capital structure, enhancing its ability to execute its long-term strategy.
Finnair and LATAM Airlines Group today implemented a new codeshare agreement on flights between Finnair’s hub in Helsinki (HEL) and LATAM’s hubs in São Paulo (GRU), Brazil, and in Santiago (SCL), Chile, via five European gateways: London (LHR), Paris (CDG), Madrid (MAD), Barcelona (BCN) and Milan (MXP).
As part of the codeshare agreement, Finnair’s AY code will be added to LATAM’s transatlantic flights between Finnair’s gateways in Europe and LATAM’s hubs in São Paulo and in Santiago. The cooperation will offer new destinations for Finnair customers, as LATAM’s flights will be the first ones flown to South America with a Finnair code.
Likewise, LATAM’s LA code will be added to Finnair’s flights between Helsinki and London, Paris, Madrid, Barcelona and Milan, providing LATAM passengers with access to Finland.
The new codeshare flights to São Paulo and Santiago are available for sale via Finnair.com as of today, for flights starting October 1, 2019.
At 13:19 (UTC-6) on July 2, flight EFLIGHT 2019-MAX (LA1296) flew into the shadow of the total solar eclipse (TSE), 12,500 meters over the Pacific Ocean. Traveling at a speed of 900 kilometers per hour, LATAM’s Boeing 787-9 Dreamliner “chased” the path of the eclipse, enabling passengers onboard to experience total darkness for over eight minutes; three times more than the two minutes and 30 seconds it was visible from the ground.
The flight departed from Easter Island’s Mataveri airport at 09:50 local time, heading northwest for two hours and 30 minutes to position itself in the TSE’s trajectory on an eastbound flight path, before returning to the island with a total journey time of five hours and 30 minutes.
Onboard, LATAM welcomed more than 50 passengers from 10 countries – including scientists as well as amateur astronomers and enthusiasts – to experience the equivalent of three TSEs in a single sighting. One of the passengers, Dr. Glenn Schneider, an astronomer at the University of Arizona, not only helped plan the flight, but also recorded his 35th total solar eclipse, a Guinness World Record.
LATAM worked with T.E.I. TOURS & TRAVEL, the trip organizer, and leading scientists for two years to plan every detail of the flight, from predicting the trajectory of the eclipse and identifying the best route for passengers to experience the phenomenon, to avoiding clouds and other weather factors.
The Court of Free Competition (TDLC) in Chile approved the Joint Business Agreement (JBA) between American and LATAM Airlines Group for both their passenger and cargo businesses. American is currently evaluating the mitigating conditions included in the agreement.
“Our JBA is good news for Chile and for our customers around the world,” said American’s Chairman and CEO Doug Parker. “While we are currently evaluating the conditions proposed by the TDLC, we are confident that these types of agreements are the future of the airline industry as they have been proven to benefit consumers, local economies and tourism industries, while also encouraging market growth and competition.”
Since the JBA with LATAM Group was announced in January 2016, the agreement has been approved by Brazil’s Administrative Council for Economic Defense (CADE), the antitrust division of the Ministry of Justice; by Aerocivil, Colombia’s civil aviation authority; and by DINACIA, Uruguay’s civil aviation authority.
LATAM Airlines (Chile) will start its new service to Tel Aviv, Israel starting on December 12, 2018 with Boeing 787 Dreamliners.
Previously on November 8, 2017, LATAM Airlines Group announced they were planning to serve Tel Aviv, Israel. The flight will be operated by LATAM Airlines from Santiago with a stop in São Paulo (SCL-GRU-TLV).