Airlines Delta completes tender offer to purchase shares in LATAM

Delta Air Lines has announced, that it has successful acquired a 20 percent equity stake in LATAM Airlines Group.

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The previously announced tender offer has now been successfully completed by Delta Air Lines. The carrier now holds a 20 percent stake in LATAM Airlines Group S.A. for approximately US$1.9 billion. Delta said, that this transaction is an important milestone to bring together the leading airlines in North America.

Steve Sear, Delta President — International and Executive Vice President — Global Sales said: “We look forward to working with LATAM to create a truly world-class partnership that will give our customers unparalleled access throughout the Americas [...] Equity investments like this help create alignment within our partnerships as we bring together our brands, enabling us to provide the very best service and reliability for our shared customers.”

In September last year, Delta and LATAM announced the signing of a strategic partnership, which includes a commercial joint venture in addition. Once fully implemented, said Delta, the partnership will unlock growth opportunities for both airlines. Especially passengers will be benefiting with more travel options.

Most recently, both airlines released their intend to start codeshare flights. Beginning in the first quarter of 2020, certain LATAM affiliates in Colombia, Ecuador and Peru will wear the Delta Air Lines code “DL” on their flights. Customers have the opportunity to use connection flights to 74 destinations in the United States and 51 onward destinations in South America.

Together, Delta and LATAM serve over 430 destinations around the world. The partnership is currently the strongest that carries passengers between North America and Latin America. Delta currently has an existing airline partnership with Aeroméxico.

With the 20 percent acquisition of Delta Air Lines comes the transfer of four Airbus A350 XWB aircraft from LATAM. Moreover, Delta will assume LATAM´s commitment to purchase 10 additional of the aircraft. The A350s are expected to be delivered between 2020 and 2025.

Delta Air Lines is one of the largest airlines in the world and carries nearly 200 million people every year. The fleet consists of Airbus A320 Family, A330, A350, Boeing 737 Family, 757, 777 and McDonnell Douglas MD-80 and MD-90 aircraft.

LATAM Airlines Group was founded in 2012 and includes nine subsidiary airlines. The fleet size is 334 aircraft strong. Mostly, the airlines are using Airbus A320 Family aircraft or A350s, Boeing 767s, 777s and 787s.

Source © news.delta.com

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