Delta buys 20% of LATAM, which will exit oneworld

[Doctore1003]

Well this is interesting. LATAM will leave oneworld, but hasn't decided whether to join SkyTeam.
Curious to see how this will impact the Qantas partnership.

Delta is buying 20% of LATAM, Latin America's largest airline

Delta Air Lines is buying a 20% stake in LATAM, Latin America's largest airline, as the Atlanta-based carrier aggressively pursues exposure to international markets.

www.cnbc.com

 

[RooFlyer]

Strewth. Exiting OW will put a big hole in that network!

 

[AIRwin]

VA should partner with them!

 

[drron]

Obviously because #juddles is not flying to SCL any more.
Thankful that we have done our Chilean adventures already.
Wonder how high QF fares to SCL will go?

 

[Doctore1003]

The QF-LATAM tie-up can continue though. QF has individual partnerships with several SkyTeam airlines.

 

[Oubline]

After Oneworld losing AirBerlin (leaving a gap in their European coverage) and now LATAM going, it’s really looking less appealing as an alliance.I did find it almost impossible to book redemptions on LATAM though anyway.

 

[woodborer]

One world statement

| oneworld

www.oneworld.com

 

[Nisho]

Strewth. Exiting OW will put a big hole in that network!

That was my first thought when I read the "will leave oneworld" part! Just replace "Strewth" with more colorful language however

 

[Nisho]

Delta CEO: SkyTeam Failed

The Atlanta-based carriers is shifting away from an alliance focus and “taking a different approach” where they use local airline brands that can operate in local markets around the world and influence those airlines to be more efficient. - Delta CEO Ed Bastian

Based on this article from View From The Wing: I doubt LATAM will bother investing in switching over to Skyteam. I reckon they'll go down the Joint Venture route. Being the biggest airline group in South America; no doubt they'd have a whole host of airlines tripping over themselves to get JVs sorted with LATAM.

 

[Mr Pumblechook]

VA should partner with them!

A DL/LA/VA Pacific joint venture? Using the DL 777s displaced by the extra LA 350s to bump BNE/MEL-LAX to daily? And a VA/LA FF partnership (one that DL won't thwart like they did to VA/AC)? Now you're talking

 

[juddles]

This is a shock to me. I cannot possibly fathom this decision. LATAM (previously LAN Chile) has seemed to always make very good decisions - hence them emerging from being just the Chilean national airline to becoming the dominant airline in all of south america. But this is something that perplexes me.

This will leave a huge gap - the only other serious airlines in that whole continent are Avianca (Star Alliance) and Aerolineas Argentinas (SkyTeam).

 

[esseeeayeenn]

Well that just made a Oneworld RTW fare completely useless for me.

 

[opusman]

Really annoying. OW status is very useful in South America.

 

[Lynda2475]

Without a OW partner in South America, I guess those wanting to do a OW RTW will need to fly in via US on AA and out via Europe using IB or vice versa?

Connecting via SCL on Latam was always quite easy due to network size, although i think service and legroom much better on Avianca but Ive only ever flow economy on intra latin america flights.

 

[RooFlyer]

Even if LATAM enters into SkyTeam (and with Aerolíneas Argentinas there, it might be a squeeze), Qantas could add more code-shares with LATAM within Sth America, thus propping up the OW network there. if they can partner with Air New Zealand, they can partner with anyone!

 

[AIRwin]

if they can partner with Air New Zealand, they can partner with anyone!

And they did partner with VA (vs Australian airports)...

 

[Nisho]

Even if LATAM enters into SkyTeam (and with Aerolíneas Argentinas there, it might be a squeeze), Qantas could add more code-shares with LATAM within Sth America, thus propping up the OW network there. if they can partner with Air New Zealand, they can partner with anyone!

I could see it working either way to be honest. QF/LA could have a JV like QF does with EK and continue from there.

OR Delta can use their influence and have LA partner with VA and compete directly with the QF offering. Pros and cons for both. I imagine ultimately it comes down to the bottom line.

 

[esseeeayeenn]

Even if LATAM enters into SkyTeam (and with Aerolíneas Argentinas there, it might be a squeeze), Qantas could add more code-shares with LATAM within Sth America, thus propping up the OW network there. if they can partner with Air New Zealand, they can partner with anyone!

I may be wrong but I don't think you can use OW codeshares on non-OW airlines as part of a OW RTW itinerary - let alone a OW RTW award itinerary.
And QF / OW benefits often don't apply on such codeshares. For example, no extra baggage allowance on QF codeshares to NOU on SB metal.
So while more QF codeshares would be a good thing I don't think they will plug the hole in OW.

 

[RooFlyer]

Rats, I think you are right.

 

[Denali]

Wonder if this means LATAM will lift their game in regards to customer service response. Latam is notoriously bad at it