Delta Air Lines and South American carrier Latam have signed a trans-American joint venture deal to combine their networks between North and South America.
The joint venture would see Delta and Latam coordinate schedules, exchange airport slots and share profits on routes between their respective home markets.
The agreement is subject to regulatory approval and follows Delta’s acquisition of a 20% stake in Latam for $1.9 billion in December.
The carriers unveiled their partnership in September last year after a Chilean court ruled a proposed joint venture between Latam and British Airways’ US airline partner American Airlines unlawful.
Latam subsequently quit the Oneworld alliance led by BA and American and ceased its codeshare agreements with the carriers, commencing codeshare arrangements with Delta instead.
Announcing the joint venture, Delta and Latam said the agreement would see them “combine the carriers’ highly complementary route networks”.
Delta chief executive Ed Bastian said: “Late last year, we set out to build the leading strategic alliance in Latin America together with Latam, and while the industry landscape has changed, our commitment to this joint venture is as strong as ever.
“Even as our carriers contend with the impact of Covid-19 and take steps to protect the safety of our customers and employees, we are building the airline alliance we know they will want to fly in the future.”
Latam Airlines Group chief executive Roberto Alvo said: “While we remain focused on navigating the Covid-19 crisis and protecting the safety and well-being of our passengers and employees, we have to look to the future and support the long-term sustainability of the group.
“Our bilateral strategic alliance with Delta remains a priority.”
The carriers already have codeshare agreements in place in Peru, Ecuador, Colombia and Brazil which allow customers to purchase flights and access onward destinations on their respective networks.
These will be expanded to cover flights between the US, Canada and South America, as well as regional flights.
Delta and LATAM’s affiliates in Chile and Argentina also plan to sign codeshare agreements in coming weeks, and the airlines have collocated at some major airports, including New York JFK and Guarulhos Airport, Sao Paulo.