Latin America

Final approval for Delta-Latam “trans-American Joint Venture Agreement”





 




 


Final approval for Delta-Latam “trans-American Joint Venture Agreement”

Friday, February 26th 2021 – 09:17 UTC


News of the JV first emerged in September 2019, when Delta purchased a stake in the South American carrier of 20%

The final approval for the Delta-LATAM joint venture has been given this week by Brazil. The agreement, which has also been given the nod from Uruguay, still needs approval in some other jurisdictions. The news was released by Simple Flying, an air industry specialized news agency.

Nevertheless, it’s a step in the right direction for the partners following the initial approval of the “trans-American Joint Venture Agreement” received last September. The Brazilian regulatory authority CADE gave final approval without any conditions. Still to formally ratify approval are the USA and Chile.

Delta CEO Ed Bastian commented on the approval, saying, “This final approval in Brazil furthers our mission to provide customers in this important market with the world-class travel experience and options they deserve. Moving forward, we will continue working with LATAM to unlock more benefits for our customers and create the premier airline alliance of the Americas.”

News of the joint venture first emerged in September 2019, when Delta purchased a stake in the South American carrier of 20%. Investing US$1.9 billion for the stake, it came with some transfer of aircraft and an additional US$ 350 million to support the establishment of the strategic partnership.

In December that year, the codeshare agreement signed between the partners allowed passengers to begin feeling the benefits of the deal. And in May 2020, the highly anticipated joint venture agreement was signed between the two airlines.

Despite LATAM filing for bankruptcy later that month, the JVA has pressed ahead. With ratification from two key nations involved in the process, the agreement has few hurdles left to overcome. LATAM Airlines Group CEO Roberto Alvo added, “This ruling reinforces the benefits of this type of agreement for travelers and enables us to advance in our commitment to delivering greater and better connectivity between South America and the world.”





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