Combing two leading airlines of the Americas, LATAM Airlines Group and Delta have announced that they have entered into a strategic partnership that will see the two airline groups, together, hold the leading position in five of the top six Latin American markets from the U.S.
Delta will invest USD$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 USD$350 million to support the establishment of the strategic partnership.
“This alliance with Delta strengthens our company and enhances our leadership in Latin America by providing the best connectivity through our highly complementary route networks,” said Enrique Cueto Plaza, Chief Executive Officer of LATAM. “We look forward to working alongside one of the world’s best airlines to enhance the travel experience for our passengers.”
The strategic partnership will unlock new growth opportunities, building upon LATAM’s and Delta’s global footprint and joint ventures worldwide, including Delta’s existing partnership with Aeroméxico. With their complementary networks, LATAM, Delta 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.
