Delta Air Lines to take 20% stake in Latam Airlines for US$1.9b

Delta Air Lines is taking a stake in South America’s biggest airline, winning out over rival American Airlines, which had also sought to work through that carrier to deepen its presence in Latin America. Delta said Thursday that it intends to buy a 20% stake in Latam Airlines Group for US$1.9b in cash and newly issued debt. That would be Delta’s biggest investment since merging with Northwest Airlines over a decade ago. “This is the biggest region of the world that we had an open space,” Delta’s CE Ed Bastian said. “This largely completes the map.” The new partnership spells the end of a 3-year effort by American Airlines to deepen cooperation with Latam. The new tie-up leaves American without a partner in Latin America as its competitors pair off in the fast-growing region for air travel. <br/>