LATAM Dishes on Their Delta Deal: Their British Airways Partnership and When They Told American

by Gary Leff

LATAM’s Chairman gave an interview in Spanish where he dished on when LATAM started talking to Delta, the timeline for shifting their partnerships, and which one’s they’re going to retain — as well as when they broke up with American Airlines.

  • There will be a wind down period as they leave oneworld, “when you leave an alliance like this, there is a period of one year to continue operating.”

    That doesn’t mean you’ll still be able to use American AAdvantage miles for travel on LATAM 11 months from now, but of course bookings made in the near term can stretch out 11 months. Start thinking about your plans to spend American’s miles for Easter Island trips!

  • It’ll be a month and a half at least before regulatory approvals for Delta’s investment are obtained.

  • LATAM will not join SkyTeam. And precisely because they won’t be part of an alliance they’ll continue with bilateral relationships.

  • They expect to continue to partner with British Airways, Iberia, and Qantas.

  • LATAM started looking at options when the Chilean Supreme Court rejected their joint venture with American and with IAG, parent of British Airways and Iberia. American didn’t get a heads up this was happening.

    We are now talking to American, a few minutes ago, they could not find out before. But the airlines have contracts that stipulate to leave. Therefore, it is part of life.

  • They don’t expect problems with Chile approving this deal, though approval for their joint venture with Delta could take time.

  • Delta will get 1-2 board seats, they are entitled to two.


Copyright: artzzz / 123RF Stock Photo

(Translation via Google Translate)

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Comments

  2. While a small portion of what you write is totally nonsensical and #fakenews – and this takes away from some good nuggets you provide, this one may take the cake (or the alliance, depending on your appetitte):
    “There will be a wind down period as they leave SkyTeam”

    Wouldn’t the airline have to join first?

  3. “They expect to continue to partner with British Airways, Iberia, and Qantas”

    Heard from Alaska Airlines HQ upon reading that comment… “Ruh Roh”

  4. I love your bolded section that American didn’t know LATAM was talking to others. Why would LATAM notify AA until there was a done deal? That’s like me informing my current employer that I’m looking for new work, it’s just stupid to do that!

  5. Give @gary a break on the incorrect SkyTeam vs OneWorld…we all know what he meant, and it’s not like this blog is a key reference for major news outlets. Mistyping, especially when you want to get something out quickly, is very understandable

  8. LATAM was just looking for money and AA and IAG weren’t going to give them any. They were failing and I am sure DL greased the palms of some government officials got get them. Why does this feel like Eithad and Jet Airways / Alitalia all over again?

    AA’s network to South America is huge and I am sure they will find a partner if they want. I am not sure they need one. I question many of these “alliances” today. I think AA should focus on the JV’s with Qantas/IAG brands/JAL and China Southern and add in Spice Jet and GOL to fill in a few gaps. AA and GOL would be a good fit, AA gets to you or from the US and GOL hops you around if needed.

    I think this just shows how crappy a partner LATAM truly is and DL fits right in with them.

  9. @Martin Worth

    Grow up. Everyone knew exactly was Gary meant. If you want to fault his analysis, go for it, but your statements just look childish.

  10. I don’t understand why the government of Chile is expected to find the Delta deal acceptable but they found the American deal unacceptable. What am I missing? What was the objection to the American deal?

  11. @Charlie – American and LATAM were the only carriers flying Santiago – Miami. Under a Delta deal there will still be two carriers flying SCL-MIA, no dimunition of competition. Today Delta flies Atlanta – Santiago, but LATAM does not – again, the deal doesn’t diminish competition.

  12. TAM was a very good airline before. LAN was a good airline. When they “merged” services did indeed drop significantly. We filed a complaint to LATAM, no reply. Even sent it on to management, no reply. Then to the CEO, a reply but nothing inside it. Just accept the poor service.

    We were not impressed with this management. We hope with Delta taking 20% (we heard its not a total buyer), there will be infusion of good management from Delta.

    Thanks Gary for the updates.

Comments are closed.