LATAM and IAG abandon joint venture plans

LATAM Airlines Group has terminated plans to develop a joint venture agreement with alliance partner IAG after deciding to leave the Oneworld alliance. The Brazil-based carrier today stated its intention to cancel the joint venture, first announced in January 2016. “IAG and LATAM Airlines have decided that they will not implement the announced joint business agreement or JBA,” the airline states in a regulatory filing. Interline agreements, codeshare agreements, contracts of access to VIP lounges and frequent passenger program between the airlines remain valid, the statement says. LATAM says in a press statement that the decision was made for "commercial reasons and in the context of changes in the aviation market since the joint business agreement was first announced in January 2016", reiterating that "both airline groups are committed to maintaining their longstanding relationship". LATAM's decision to leave Oneworld came after Delta announced in September that it will invest $1.9b in LATAM, representing a 20% stake in the company. Earlier this week, the South American carrier finalised the new codeshare agreement with pending-equity owner and Delta, which will see the airline terminate its joint venture with American Airlines on 31 January 2020.<br/>