Delta’s LATAM Joint Venture Has Been Approved By The DOT

On Friday, the US Department of Transportation (DOT) approved the Joint Venture Agreement between Delta Air Lines and LATAM Airlines Group. This partnership will allow passengers to access more than 300 destinations in the Americas, they said in a statement.

Approved the JVA by the DOT

The DOT granted approval for the JV between Delta and LATAM, which will allow the airlines to enhance the travel experience for their passengers and cargo customers by offering them new benefits, including improved service and more routes to be added to their codeshare routes. The Joint Venture must be implemented within six months.

Both airlines first announced their partnership in 2019, after Delta invested in LATAM. The South American carrier finished its prior alliance with American Airlines and left oneworld in a shocking move.

In 2020, Delta and LATAM introduced their first codeshare services in South America, and in 2021 expanded to more than 20 routes between the US and South America, plus connections to a wide range of domestic and regional destinations from their hubs in Atlanta, New York, and Los Angeles, Santiago, Lima, Bogota, and São Paulo, enhancing connectivity between the two regions.

The DOT have approved Delta and LATAM’s Joint Venture Agreement. Photo: Vincenzo Pace | Simple Flying.

New opportunities

“It must be noted that the Department grants antitrust immunity to encourage flying that otherwise would not occur in order to provide consumer benefits otherwise unattainable,” said the DOT in the approval.

Ed Bastian, Delta Air Lines CEO, said that the Joint Venture between both companies will help grow the market between North and South America. “We will now get to work with LATAM to transform the travel experience for all of our customers and create new opportunities for our employees.”

According to both companies, the Joint Venture will provide new or expanded services on at least 18 nonstop routes, providing approximately US$460 million in estimated annual consumer benefits. Moreover, the approved partnership will allow Delta and LATAM to compete against American Airlines and United Airlines. The airlines estimate they will be able to attract up to one million more annual passengers and increase their capacity by more than 68%.

The airlines estimate they will be able to attract up to one million more annual passengers and increase their capacity by more than 68%. Photo: Vincenzo Pace | Simple Flying.

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The airlines estimate they will be able to attract up to one million more annual passengers and increase their capacity by more than 68%. Photo: Vincenzo Pace | Simple Flying.

Using data by Cirium, there are 3,545 weekly flights scheduled between the United States and Latin America in September. American Airlines is the top player in this market, operating 909 weekly flights and offering 148,945 seats. That’s a 25% market share by one airline alone.

United Airlines operates 594 weekly flights and offers 90,417 seats. Surprisingly, Volaris, the Mexican ultra-low-cost carrier, is the third largest airline in both regions, offering 281 flights per week and 52,666 seats. Delta is the fourth, and LATAM is the 13th.

“The approval by the DOT will give rise to the start of work with Delta to deliver more and better benefits to LATAM and Delta customers, such as faster connections and the joint accrual of miles in frequent flyer programs, among many others. I am sure that, over time, we will be able to offer the best connections while incorporating a sustainable view of the future,” said Roberto Alvo, CEO of LATAM Airlines Group.

What do you think about the approval of Delta and LATAM’s Joint Venture Agreement? Are you excited about it? Let us know in the comments below.