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  • Joe Breitfeller

Delta Air Lines and LATAM Receive Final Approval for Brazil Joint Venture Agreement

The joint venture agreement aims to enhance the carriers’ route networks between North and South America with improved travel options, shorter connection times and new routes between North America and Brazil.

LATAM Airbus A320neo Empennage - Courtesy Airbus

On Wednesday (February 24, 2021), Delta Air Lines announced that their joint venture agreement (JVA) with LATAM in Brazil has received final approval from the Administrative Council for Economic Defense (CADE), Brazil’s competition authority. The initial approval for the JVA was granted in September 2020. The JVA seeks to enhance the route networks of both airlines, delivering improved connectivity between North and South America and new routes to Brazil. The JVA has also received approval in Uruguay, while the process continues in the U.S., Chile and other jurisdictions.

In Wednesday’s announcement, Delta Air Lines’ CEO, Ed Bastian, said,

“This final approval in Brazil furthers our mission to provide customers in this important market with the world-class travel experience and options they deserve. Moving forward, we will continue working with LATAM to unlock more benefits for our customers and create the premier airline alliance of the Americas.”

Also commenting on the JVA approval, LATAM Airlines Group’s CEO, Roberto Alvo, added,

“This ruling reinforces the benefits of this type of agreement for travelers and enables us to advance in our commitment to delivering greater and better connectivity between South America and the world.”

The joint venture will deliver a broader and more competitive network with benefits of both carriers including enhanced travel opportunities through codeshare agreements and redemption of Delta SkyMiles and LATAM PASS points on both airlines, with access to over 435 global destinations. Additionally, the airlines now share terminals at New York’s John F. Kennedy International Airport (JFK Terminal 4) and São Paulo’s Guarulhos Airport (GRU Terminal 3). The JVA also offers guests reciprocal lounge access to 35 Delta Sky Club lounges in the U.S. and five LATAM VIP lounges in South America.

LATAM Airlines Group is the leading airline group in Latin America with operations in five domestic markets including Brazil, Chile, Colombia, Ecuador and Peru. The Group also operates international service within Latin America and to Europe, the U.S. and the Caribbean. LATAM operates a fleet of Boeing 767,777,787, Airbus A319, A320, A320neo and A321 aircraft. The company’s shares are traded on the Santiago de Chile stock exchange and its ADRs are traded on the OTC markets in the U.S.

Source(s): Delta Air Lines, LATAM