When Delta stole the LATAM partnership out from under them, American put out a statement claiming the partnership wasn’t very valuable anyway and that they didn’t see much upside without being able to partner in Chile – something the Chilean Supreme Court had foreclosed back in May.
The idea that the joint venture wasn’t important to American without Chile was always silly but it was American’s position – a position that CEO Doug Parker just undermined.
American of course only flies to one city in Chile – Santiago – and doesn’t have nearly the operations there as in Brazil. LATAM is strong across South America, and of course American Airlines talks with Brazilian carrier Gol about a joint venture underscore how important a deal would have been without Chile.
At a question and answer session with employees last week Doug Parker
We worked hard to try to convince LATAM that we should figure out a way to carve out Chile because in the grand scheme of LATAM’s network, particularly the United States, not a huge piece. If you’re LATAM it’s a lot easier said than done that’s their entire operation and trying to have a piece of it that has to be run differently and Chinese walls around the people that are running that organization versus the ones that can talk to us isn’t easy by any means, seems sub-optimal to them, and also complicates our ability to get it done with the United States.
Copyright: artzzz / 123RF Stock Photo
American viewed the Chilean portion of a LATAM joint venture as ‘not a huge piece’ and they wanted to get the agreement done with the carrier across the rest of South America – not matter what story they’re telling now, with Delta poaching the LATAM partnership.