Delta and Latam Airlines look for a South American edge under new partnership

Delta and Latam Airlines Group are on the cusp of regulatory sign off for a broad partnership that will give them a competitive edge — at least for now — on flights between the US and South America. The US Department of Transportation found that the proposed immunized joint venture would provide “substantial” benefits in the market, and tentatively approved the pact with several conditions on June 23. Those conditions include a 10-year term, and requirements that both Delta and Latam interline with other non-aligned South American and US airlines, respectively, if such a tie up is requested. The airlines, in a joint statement, said they “applaud” the DOT’s decision, and added that the partnership will “vastly improve travel options and service for customers traveling between the two regions.” They plan to begin implementing the alliance once the regulator finalizes its decision that, given the required response and comment periods, could not occur before July 18. Approval of the Delta-Latam joint venture is a big win for the airlines. Both have suffered major blows to their international partnership ambitions at the hands of regulators in recent years. Delta dropped its planned joint venture with Canada’s WestJet in late 2020 after the DOT requested what the airlines saw as “arbitrary and capricious” conditions. And Latam ended its long-standing partnership with American Airlines in 2019 after a Chilean court blocked their planned joint venture. Latam, which is operating under US Chapter 11 bankruptcy protection, included the Delta joint venture as a key part of its restructuring plan. A bankruptcy judge approved that plan earlier in June, and Latam plans to exit Chapter 11 in the second half of the year.<br/>