Delta Air Lines
- IATA/ICAO Code
- DL/DAL
- Airline Type
- Full Service Carrier
- Hub(s)
- Boston Logan International Airport, Detroit Metropolitan Wayne County Airport, Hartsfield-Jackson Atlanta International Airport, Los Angeles International Airport, Minneapolis-St. Paul International Airport, New York JFK Airport, LaGuardia Airport, Salt Lake City International Airport, Seattle-Tacoma International Airport
- Year Founded
- 1929
- Alliance
- SkyTeam
- CEO
- Ed Bastian
- Country
- United States
On Thursday, the Department of Transportation (DOT) tentatively granted approval and antitrust immunity to the alliance agreements between Delta Air Lines and LATAM Airlines Group. Both companies look to launch a joint venture agreement (JVA) to plan, price, and share revenues and costs covering routes between the United States and Canada on one end and the South American region on the other. Nonetheless, the two carriers still have to follow certain remedies for the DOT to fully approve the JVA. Let’s investigate further.
The story
Delta and LATAM announced a Joint Venture Agreement on May 2020. This strategic alliance would include codeshare agreements between Delta and LATAM’s affiliates in Peru, Ecuador, Colombia, Chile and Brazil, allowing customers to purchase flights and access onward destinations in their respective networks and would be expanded to cover long-haul flights between the United States, Canada, and South America.
Overall the JVA would cover 7,000 city-pair markets; provide new or expanded service on at least 18 nonstop routes; provide approximately US$460 million in estimated annual consumer benefits; optimize connectivity between Delta’s and LATAM’s hub networks; lower prices; create an immunized network which would allow competing against American Airlines and United Airlines networks in the region; and use efficiencies of the combined operations to optimize aircraft utilization,…