Delta Air Lines is selling US$1.5b worth of bonds to help pay for its 20% stake in LATAM Airlines, according to a prospectus filed with the SEC Wednesday. The airline announced its intent 4 weeks ago to form a joint venture with LATAM to quickly increase its business in Latin America by connecting with LATAM's extensive airport network, and helping LATAM reach more customers in North America, Europe and Asia. The move also is expected to significantly enhance the cargo operations and offerings for both Delta and LATAM, experts have said. The proceeds of the sale will go towards the investment and to help LATAM with transition costs. Five-year notes that mature in 2024 will offer 2.9% interest and raise US$900m. Another $600m is being raised with 3.75% notes that mature in 10 years. <br/>
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The management and pilots of Kenya Airways have reached a standoff after negotiations on how to address a pilots’ shortage hit a snag. The pilots, who threatened to take industrial action, seek govt intervention to resolve the dispute. The Kenya Airline Pilots Association (Kalpa) has suspended talks with management over a collective bargaining agreement after engaging in a heated debate over the airline’s attempt to hire 20 pilots on a contract basis to fly Boeing 737s. Kenya Airways pilots now seek a govt-appointed mediator to arbitrate, insisting that failure to resolve the labour standoff will lead to a halt in operations. Monday the pilots association sent a letter to Labour cabinet secretary Ukur Yatani accusing airline management of breaching sections of the current pilot contract. <br/>
Czech Airlines has emerged as an Airbus A220 customer, ordering 4 of the -300 variant as part of an agreement which includes converting A320neos to the long-range A321XLR. The carrier had 7 A320neos on order but last month cancelled 4 of them. Airbus says the airline has instead ordered 4 A220-300s, which will be configured with 149 seats. The airframer revealed earlier this month that an undisclosed customer had ordered 4 A220-300s and 10 of the smaller A220-100. Airbus has not confirmed whether Czech Airlines is the customer behind this agreement for 14 aircraft, and the Czech Airlines agreement does not mention A220-100s. But the carrier is converting the 3 remaining A320neos to the long-range A321XLR which was formally unveiled at the Paris air show earlier this year. <br/>