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SteelChair
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:15 pm

I wonder how the $1.9 billion was arrived at? That seems a little expensive at first glance.
 
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aemoreira1981
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:16 pm

jomur wrote:
Lets throw a curve ball into this and AA buys 21%?.....


American Airlines has way too much debt to be able to afford that. Delta Air Lines is funding this with some debt, but also cash.

SteelChair wrote:
I wonder how the $1.9 billion was arrived at? That seems a little expensive at first glance.


It's about a 74 percent premium compared to the today's closing price. LATAM's current market cap is US$5.46 billion.
 
klkla
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:23 pm

jfk777 wrote:
I think LATAM has more to lose in Miami because Delta is much smaller in Miami then AA.


Not disagreeing with your statement, but where can AA connect LATAM traffic in MIA that DL cannot connect from ATL?
 
Thibault973
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:24 pm

I guess it's time for GOL to remove the big stickers they have in front of their cabins that say "in cooperation with Delta and AFKL" !

So many questions comes to mind...what does this mean for AFKL and G3 relationship who just celebrated the 1 year anniversaire of their joint "hub" in FOR ?
 
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BN727227Ultra
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:25 pm

eal wrote:
What is going to happen at MIA? LATAM's presence was huge, basically a mini hub, will that switch over to ATL or will Delta start trying to build feed out of MIA to compliment the O+D. This is probably the craziest news I've heard in awhile.


My guess is that MIA becomes an open city to the same extent as LAX.
 
LightChop2Chop
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:28 pm

I wonder what happens to the LA QF relationship
 
klkla
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:29 pm

aemoreira1981 wrote:
It's about a 74 percent premium compared to the today's closing price. LATAM's current market cap is US$5.46 billion.


LATAM expects to reduce it debt by around $2 Billion as a result of this transaction which should add a lot of value to market cap if everything goes as planned.
 
MSPNWA
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:29 pm

That's a big premium to pay for a currently money-losing enterprise. It's a big gamble. It's certainly not the safe play with $1.9B dollars.
 
SteelChair
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:30 pm

aemoreira1981 wrote:
jomur wrote:
Lets throw a curve ball into this and AA buys 21%?.....


American Airlines has way too much debt to be able to afford that. Delta Air Lines is funding this with some debt, but also cash.

SteelChair wrote:
I wonder how the $1.9 billion was arrived at? That seems a little expensive at first glance.


It's about a 74 percent premium compared to the today's closing price. LATAM's current market cap is US$5.46 billion.


Well and then there is the value of the 350s also.....
 
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BN727227Ultra
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:32 pm

Scotron12 wrote:
Big vote of confidence in the A350...put to rest the constant comments that DL were not satisfied with them! The A350-1000 would be a great addition for DL.



Agree about the 350s, but are 10 788s and 14+12 789s too many to divest? Methinks DL gets a backdoor Dreamliner fleet.
 
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Midwestindy
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:34 pm

BN727227Ultra wrote:
eal wrote:
What is going to happen at MIA? LATAM's presence was huge, basically a mini hub, will that switch over to ATL or will Delta start trying to build feed out of MIA to compliment the O+D. This is probably the craziest news I've heard in awhile.


My guess is that MIA becomes an open city to the same extent as LAX.


Keep in mind DL has a fairly large FLL presence, and runs a few p2p routes from MIA.

I wouldn't be surprised if some of the FLL flying shifts to MIA, MCO-MIA comes back, and the CMH/IND/RDU/DCA-MIA flights get expanded.

AA will likely respond to any DL growth with massive resistance though.

Assuming (based on Ed's comments) that MIA becomes a focus city for DL, DL's network will be formidable.
Hubs: ATL, SEA, LAX, SLC, MSP, DTW, BOS, JFK, LGA
Focus Cities: RDU, CVG, MIA, AUS, BNA, SJC
De facto focus cities: PDX, LAS, MCO, e.t.c
Last edited by Midwestindy on Thu Sep 26, 2019 11:37 pm, edited 1 time in total.
Status for 2019/2020: AAdvantage Platinum, Delta Gold, Southwest A-List
 
flyingisthebest
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:34 pm

The next question is what does this mean for Qantas? They are hugely reliant on LATAM for South America. Does it mean their 747 transitioning to 787 flight continues to go to Santiago or does it move back to Buenos Aires? Who will now provide feed or will LATAM still? I could see Virgin Australia benefiting massively out of this deal.


Doesn’t Qatar also own parts of LATAM?
I really can see Al Baker and Ed working together not.....
 
Sydscott
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:34 pm

LightChop2Chop wrote:
I wonder what happens to the LA QF relationship


Likely nothing. The only 2 carriers of choice you have down this way are QF or NZ. NZ are in bed with AR and Latam have a decent business with QF that has grown exponentially. So I doubt you'll see any change at all.

BN727227Ultra wrote:
eal wrote:What is going to happen at MIA? LATAM's presence was huge, basically a mini hub, will that switch over to ATL or will Delta start trying to build feed out of MIA to compliment the O+D. This is probably the craziest news I've heard in awhile.My guess is that MIA becomes an open city to the same extent as LAX.


I doubt it. I would have thought that, if anything, this gives AA further impetus to strengthen and fortify MIA prior to Latams departure from their alliance. AA would have great insights into exactly what traffic LATAM is carrying at MIA and where it is going and I have no doubt AA will seek to protect its hub. So if DL thinks MIA comes into play somehow because of this then I'd suggest they are under-estimating AA.
 
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BN727227Ultra
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:35 pm

dmorbust wrote:
Can we start listing some potential new JV routes?


DTW seems like a no-brainer...
 
pipeafcr
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:35 pm

Does this mean that Qantas May move back to EZE? Oh how the the turned tables
Felipe Carrillo
 
SonomaFlyer
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:35 pm

The purchase price includes four 350s with LATM now and another 10 coming over the next four years. They get a seat on the board, blow out OneWorld in South America and Delta continues to take major steps to become its own alliance with equity stakes with partners around the world given their insane level of profitability. They are providing $350m in cash to assist LATM in its transition away from OneWorld and will no doubt use LATM to plug into Delta's hubs using mostly LATM metal to the extent allowed by their pilot's contract.

This is an example of one management team playing chess while the others are playing checkers. AA's strategy with OneWorld isn't terrible but the amount of debt they took all at once plus their operational issues is exposing huge differences between the carriers.

DAMN!
 
MIflyer12
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:38 pm

BN727227Ultra wrote:
Scotron12 wrote:
Big vote of confidence in the A350...put to rest the constant comments that DL were not satisfied with them! The A350-1000 would be a great addition for DL.



Agree about the 350s, but are 10 788s and 14+12 789s too many to divest? Methinks DL gets a backdoor Dreamliner fleet.


Delta pilots fly Delta planes. LATAM pilots fly LATAM planes. It would make no sense to pay $1.9 Billion for a 20% stake and then implode LATAM's long-haul ops.
 
Tomsixty2
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:38 pm

Wow.....Great move by Delta.
 
dmorbust
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:38 pm

SteelChair wrote:
I wonder how the $1.9 billion was arrived at? That seems a little expensive at first glance.


It's about a 74 percent premium compared to the today's closing price. LATAM's current market cap is US$5.46 billion.[/quote]

DL paid a huge premium, and I believe that $1.9 billion does not include the $350 million DL is paying LATAM to leave OneWorld essentially. And DL has to assume those A350s. It's a big price to pay, and just goes to show how much DL had to offer to swoop in and steal LATAM away.

LATAM got bribed in a way. Still a huge coup for DL, but time will tell if they can make the numbers work for this to end up yielding a good ROI.

I am still astounded by the move.
 
jasoncrh
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:43 pm

Vast majority of traffic on LATAM’s flights to Miami co size of Latin Americans going to Miami and not connecting onward. They don’t need the connections beyond Miami.


quote="klkla"]
jfk777 wrote:
I think LATAM has more to lose in Miami because Delta is much smaller in Miami then AA.


Not disagreeing with your statement, but where can AA connect LATAM traffic in MIA that DL cannot connect from ATL?[/quote]
 
malev2012
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:43 pm

MIflyer12 wrote:
dmorbust wrote:
Can we start listing some potential new JV routes? This should make DL's decision to resume JFK-BOG actually work this time, and I could also see DL add LAX-BOG. LATAM will send their own metal to ATL - I see ATL as the real winner here getting a lot more service to South America -and DL may add JFK-SCL or JFK-LIM (but probably not though). Anything else come to mind?


I expect we'll see some LAX/SLC - Colombia/Ecuador/Peru routes, although that might be 3-5 years out.


I see LAX, but SLC seems like a bit of a reach, I'd be shocked to see Latin America routes from SLC as likely as routes from AUS.
Airlines flown: AA, AB, AC, AY, BA, CO, DL, DY, EW, F9, G4, IB, KL, LH, LX, NK, NW, NZ, OS, QF, SN, TP, UA, US, VA, VC, WN, XE
 
JJ777
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:45 pm

Well this is something I really didn't expect.

As a frequent JJ/LA flyer it's a shame we won't get to see those brand new A350s flying from GRU. I suppose the 77Ws will remain an important part of LA's fleet for a long time then.

I also suppose AA will now be forced to court G3, and perhaps UA will increase their stake in AD now? We'll have to wait and see.
 
AlexBrewster03
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:45 pm

I am in absolute shock, but this is awesome for DL and couldn’t be happier for them. What I really want now is a LATAM flight to ATL...
 
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Miami
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:47 pm

Image
Aviation is proof that given, the will, we have the capacity to achieve the impossible. - Eddie Rickenbacker
 
dmorbust
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:48 pm

SonomaFlyer wrote:
The purchase price includes four 350s with LATM now and another 10 coming over the next four years. They get a seat on the board, blow out OneWorld in South America and Delta continues to take major steps to become its own alliance with equity stakes with partners around the world given their insane level of profitability. They are providing $350m in cash to assist LATM in its transition away from OneWorld and will no doubt use LATM to plug into Delta's hubs using mostly LATM metal to the extent allowed by their pilot's contract.

This is an example of one management team playing chess while the others are playing checkers. AA's strategy with OneWorld isn't terrible but the amount of debt they took all at once plus their operational issues is exposing huge differences between the carriers.

DAMN!


Do we know that purchase price includes 4 A350s? There is no way it also includes the 10 A350s that haven't arrived yet. I am reading this transaction as $1.9 billion for stock (a ~75% premium over market price), $350 million to LATAM for them to exit OneWorld (so really an even greater premium paid), and separately DL is assuming LATAM's future A350 deliveries and buying 4 from their current fleet. If the purchase price includes the 4 planes then it isn't such a big premium and that is a great deal for DL, but that's not how I read the deal. Can anyone clarify?
 
MIflyer12
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:53 pm

SonomaFlyer wrote:
The purchase price includes four 350s with LATM now and another 10 coming over the next four years.


No, it's not clear that it does. I'm really skeptical that the $1.9 Billion gets them the ten A350s not yet delivered, emphasis mine: has agreed to assume LATAM’s commitment to purchase 10 additional A350 aircraft to be delivered beginning in 2020 through 2025
 
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aemoreira1981
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:58 pm

klkla wrote:
jfk777 wrote:
I think LATAM has more to lose in Miami because Delta is much smaller in Miami then AA.


Not disagreeing with your statement, but where can AA connect LATAM traffic in MIA that DL cannot connect from ATL?


Or Orlando! I see Delta making MCO a focus city similar to what AUS could soon become.
 
jumbojet
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:58 pm

14 new 350's. Thats a lot. No way DL takes the 777's off of their current mission as they are in the midst of a very expensive refurbishment. basically means those 350's are for growth. Thats a lot of growth.....to where?
 
MSPNWA
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Re: Delta buying 20% of LATAM

Thu Sep 26, 2019 11:59 pm

dmorbust wrote:
Can anyone clarify?


I'm reading it the same way. The DL press release says they're spending $1.9B for a 20% stake and buying stock @ $16/share. At today's stock volume, it comes out to around $2B, so I don't see how the $1.9B includes any airplanes. Maybe the 4 A350s are in the additional $350m.
 
LipeGIG
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Re: Delta buying 20% of LATAM

Fri Sep 27, 2019 12:01 am

Interesting move.
DL decided to go deep in Latin America focusing on an airline that presents a more balanced risk (it is strong in Brazil, but it is also relevant in Peru, Chile, Colombia and Ecuador) versus the pure Brazil risk (G3). Also they grow removing a key player from Oneworld and finally putting a strong advantage for them (Skyteam ?) in the region.

This also turns OneWorld from the top alliance in Latin America into the weak one!

ordbosewr wrote:
Gotta love the move by DL to both strengthen themselves and hurt a competitor. Well done.

That Gol equity just got valuable to both UA and AA.


Hmmm... I can't agree on that.
G3 will face a major challenge now without DL. They have negative equity, and now can't count with the strong support of DL. I am very skeptical about G3 ability to survive in the long run.
G3 is a Brazil big airline but does not represent the footprint AA enjoyed with LA.

To buy equity on G3, it would be better for UA or AA to fly more to Brazil.

I only see AA looking for a code-share agreement.
New York + Rio de Janeiro = One of the best combinations !
 
Phoenix757767
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Re: Delta buying 20% of LATAM

Fri Sep 27, 2019 12:01 am

Midwestindy wrote:
BN727227Ultra wrote:
eal wrote:
What is going to happen at MIA? LATAM's presence was huge, basically a mini hub, will that switch over to ATL or will Delta start trying to build feed out of MIA to compliment the O+D. This is probably the craziest news I've heard in awhile.


My guess is that MIA becomes an open city to the same extent as LAX.


Keep in mind DL has a fairly large FLL presence, and runs a few p2p routes from MIA.

I wouldn't be surprised if some of the FLL flying shifts to MIA, MCO-MIA comes back, and the CMH/IND/RDU/DCA-MIA flights get expanded.

AA will likely respond to any DL growth with massive resistance though.

Assuming (based on Ed's comments) that MIA becomes a focus city for DL, DL's network will be formidable.
Hubs: ATL, SEA, LAX, SLC, MSP, DTW, BOS, JFK, LGA
Focus Cities: RDU, CVG, MIA, AUS, BNA, SJC
De facto focus cities: PDX, LAS, MCO, e.t.c


With what gates?
 
dcajet
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Re: Delta buying 20% of LATAM

Fri Sep 27, 2019 12:03 am

Miami wrote:
Why is everyone freaking out?

Doubt LATAM leaves OneWorld.


Hear it from ow directly: https://www.oneworld.com/news/2019-09-2 ... t-on-LATAM
Keep calm and wash your hands.
 
jasoncrh
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Re: Delta buying 20% of LATAM

Fri Sep 27, 2019 12:03 am

Nothing would block QF from continuing to work with LATAM



flyingisthebest wrote:
The next question is what does this mean for Qantas? They are hugely reliant on LATAM for South America. Does it mean their 747 transitioning to 787 flight continues to go to Santiago or does it move back to Buenos Aires? Who will now provide feed or will LATAM still? I could see Virgin Australia benefiting massively out of this deal.


Doesn’t Qatar also own parts of LATAM?
I really can see Al Baker and Ed working together not.....
 
MIflyer12
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Re: Delta buying 20% of LATAM

Fri Sep 27, 2019 12:05 am

MSPNWA wrote:
That's a big premium to pay for a currently money-losing enterprise. It's a big gamble. It's certainly not the safe play with $1.9B dollars.


If shareholders disagree with this direction they can voice disapproval. It is shareholder money.

How do you compare this (shareholder money) to the State of Minnesota/MAC financing of $761 million in Northwest Airlines in March '92, only to see a financial restructuring less than then months later?

https://www.leg.state.mn.us/lrl/guides/guides?issue=nwa
 
LipeGIG
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Re: Delta buying 20% of LATAM

Fri Sep 27, 2019 12:05 am

SteelChair wrote:
I wonder how the $1.9 billion was arrived at? That seems a little expensive at first glance.


The deal have some non-financial commitments like LA to leave OneWorld. This is why they need to pay a premium over share price.
New York + Rio de Janeiro = One of the best combinations !
 
oosnowrat
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Re: Delta buying 20% of LATAM

Fri Sep 27, 2019 12:10 am

Who was the poster talking about DL's "four corners" strategy awhile back? :-)
 
MSPNWA
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Re: Delta buying 20% of LATAM

Fri Sep 27, 2019 12:11 am

MIflyer12 wrote:
If shareholders disagree with this direction they can voice disapproval. It is shareholder money.

How do you compare this (shareholder money) to the State of Minnesota/MAC financing of $761 million in Northwest Airlines in March '92, only to see a financial restructuring less than then months later?

https://www.leg.state.mn.us/lrl/guides/guides?issue=nwa


Your point is? Nice red herring to the simple fact that DL paid a heavy premium for a risky investment.

P.S. I believe the MAC to be a joke. Good try.
 
flyinghippo
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Re: Delta buying 20% of LATAM

Fri Sep 27, 2019 12:11 am

So is Delta adding 14 A350s to DELTA's fleet? Or just committing to LATAM's purchase of 10 A350s while adding 4 to Delta's fleet?
 
SteelChair
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Re: Delta buying 20% of LATAM

Fri Sep 27, 2019 12:11 am

jumbojet wrote:
14 new 350's. Thats a lot. No way DL takes the 777's off of their current mission as they are in the midst of a very expensive refurbishment. basically means those 350's are for growth. Thats a lot of growth.....to where?


Not immediately. But with the 359s that were already ordered and deferred, it provides a road map to retire the 777s in 5-7 years, or by 2025, which is what the agreement says for the other 10 from LATAM. The 747s were retired about that long after their interior mods weren't they?
 
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seemyseems
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Re: Delta buying 20% of LATAM

Fri Sep 27, 2019 12:16 am

socalflyer00 wrote:
It seems like LATAM has A350-1000's on order. Will Delta be adding the -1000 to its fleet or taking delivery of more -900s?


That would be a dream :cloudnine:
seemyseems in ATL
 
jfk777
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Re: Delta buying 20% of LATAM

Fri Sep 27, 2019 12:16 am

klkla wrote:
jfk777 wrote:
I think LATAM has more to lose in Miami because Delta is much smaller in Miami then AA.


Not disagreeing with your statement, but where can AA connect LATAM traffic in MIA that DL cannot connect from ATL?


Its not about where Delta can connect people over ATL that AA can in Miami, its for that reason 20 years ago South African moved a gateway from MIA to ATL.

It's about LATAM having 15 (guess) widebodies daily to MIA vs. nothing(today) to ATL. LATAM will fly from their bigger hubs like GRU & SCL to ATL but they will not replicate their entire Miami schedule to Atlanta. The number one US destination for LATAM will still be Miami and JFK second. LATAM to Detroit is also interesting. Delta will expand their own schedules to Santiago and Sao Paulo too.

Latam will also have to move out of AA JFK terminal 8 since AA needs the space for BA. LATAM will have to crowd into JFK T4. The European angle here is intriguing, AF & KLM now have huge support at many of their larger and important Latin Destinations. Virgin at GRU now gets feed they could on dream of before, they are fly a Dreamliner to GRU. Orlando could do some Synergy since DL does fly to Brazil from MCO. The combinations are endless, we shall see how this develops.
 
jayunited
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Re: Delta buying 20% of LATAM

Fri Sep 27, 2019 12:17 am

dmorbust wrote:
Do we know that purchase price includes 4 A350s? There is no way it also includes the 10 A350s that haven't arrived yet. I am reading this transaction as $1.9 billion for stock (a ~75% premium over market price), $350 million to LATAM for them to exit OneWorld (so really an even greater premium paid), and separately DL is assuming LATAM's future A350 deliveries and buying 4 from their current fleet. If the purchase price includes the 4 planes then it isn't such a big premium and that is a great deal for DL, but that's not how I read the deal. Can anyone clarify?


Exactly that portion of the article isn't complete clear. Below is a copy and paste of the paragraph

In addition to buying 20% of LATAM for $1.9 Billion, Delta will also be spending $350 million to expand its partnership with the carrier. As part of the deal, Delta will acquire four Airbus A350 planes and assume LATAM’s commitment to buy 10 more A350s between 2020 and 2025.

https://www.cnbc.com/2019/09/26/delta-i ... rline.html

If this $1.9 Billion includes the 4 A350s its a out of this world deal for DL. If DL still has to pay for the 4 A350s on top of the $1.9 Billion its still a great deal and a huge blow to AA. As far as the 10 remaining commitments DL can negociate with Airbus on the future of those deliveries.

Equally as interesting the article claims AA's proposed JV with LA was blocked by the Chilean Supreme Court which is why AA now claims their partnership with LA was only worth around $20 Million a year. According to the article this deal with DL must still be approved by both U.S. and Chilean regulators. Since the Chilean Supreme Court (according to the article) blocked AA's JV with LA what happens if the Chilean Supreme Court blocks DL's proposed JV?
What happens if the regulators approve the 20% stake, DL's aquiring 4 A350s and taking on 10 commitments but the JV part of this deal is ultimately is blocked by the Supreme Court? Can a senario like this happen where DL is left holding the bag? Or is this a package deal DL gets the JV with their 20% stake or DL walks and LA is on their own?
I'm asking because AA would have raked in millions yearly if their JV with LA had gone through DL now stand to rake in those millions but only if they get the JV which was denied AA.
 
airDFW
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Re: Delta buying 20% of LATAM

Fri Sep 27, 2019 12:17 am

Phoenix757767 wrote:
AA’s response:

American Airlines remains the largest U.S. carrier to both Latin and South America and we look forward to competing and growing in this region of the world.

http://news.aa.com/news/news-details/20 ... p-NET-ALP/


LATAM back stabbed AA. They were talking to DL while JV talks were on going with AA on one hand.
 
MIflyer12
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Re: Delta buying 20% of LATAM

Fri Sep 27, 2019 12:18 am

jumbojet wrote:
14 new 350's. Thats a lot. No way DL takes the 777's off of their current mission as they are in the midst of a very expensive refurbishment. basically means those 350's are for growth. Thats a lot of growth.....to where?


It isn't a lot, really, not for a carrier the size of DL (153 widebodies at present), over six years, with a lot of 767s to retire (and nothing but 32 more 339s on order into 2024). Think current fleet minus retirements plus 2-3% compounded annual growth.
 
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qf2220
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Re: Delta buying 20% of LATAM

Fri Sep 27, 2019 12:19 am

LightChop2Chop wrote:
I wonder what happens to the LA QF relationship


QF has shown its very able and willing to work outside the one world alliance - I see no reason to say that QF and LA won't keep working as they do, or even more closely in the future.

If AR becomes part of one world it might change a couple of things, but not many. Indeed it could open the doors for SYD-EZE with support from AR at that end - now that would be some great service between Oceania and South America (particularly once more 789s come online with QF.
 
Nola
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Re: Delta buying 20% of LATAM

Fri Sep 27, 2019 12:20 am

Midwestindy wrote:
BN727227Ultra wrote:
eal wrote:
What is going to happen at MIA? LATAM's presence was huge, basically a mini hub, will that switch over to ATL or will Delta start trying to build feed out of MIA to compliment the O+D. This is probably the craziest news I've heard in awhile.


My guess is that MIA becomes an open city to the same extent as LAX.


Keep in mind DL has a fairly large FLL presence, and runs a few p2p routes from MIA.

I wouldn't be surprised if some of the FLL flying shifts to MIA, MCO-MIA comes back, and the CMH/IND/RDU/DCA-MIA flights get expanded.

AA will likely respond to any DL growth with massive resistance though.

Assuming (based on Ed's comments) that MIA becomes a focus city for DL, DL's network will be formidable.
Hubs: ATL, SEA, LAX, SLC, MSP, DTW, BOS, JFK, LGA
Focus Cities: RDU, CVG, MIA, AUS, BNA, SJC
De facto focus cities: PDX, LAS, MCO, e.t.c


Just one big enchilada hub missing: Texas. DL needs more then a focus city there. It needs a hub to connect the southeast to the Midwest/mountain west without backtracking to ATL, DTW or SLC.
 
jumbojet
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Re: Delta buying 20% of LATAM

Fri Sep 27, 2019 12:21 am

SteelChair wrote:
jumbojet wrote:
14 new 350's. Thats a lot. No way DL takes the 777's off of their current mission as they are in the midst of a very expensive refurbishment. basically means those 350's are for growth. Thats a lot of growth.....to where?


Not immediately. But with the 359s that were already ordered and deferred, it provides a road map to retire the 777s in 5-7 years, or by 2025, which is what the agreement says for the other 10 from LATAM. The 747s were retired about that long after their interior mods weren't they?


They start taking deliveries as soon as next year. No way its even close to tying into the retirement of the 777's.
 
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NearMiss
Posts: 190
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Re: Delta buying 20% of LATAM

Fri Sep 27, 2019 12:21 am

Miami wrote:


So, to sum it up, American will not leave the SCL route.
"There is an art, it says, or rather, a knack to flying. The knack lies in learning how to throw yourself at the ground and miss."
 
ITSTours
Posts: 600
Joined: Wed Nov 29, 2017 10:51 pm

Re: Delta buying 20% of LATAM

Fri Sep 27, 2019 12:24 am

Will Delta try to form a JV with LATAM?
 
TYWoolman
Posts: 635
Joined: Sat Jun 24, 2017 8:24 pm

Re: Delta buying 20% of LATAM

Fri Sep 27, 2019 12:25 am

Nola wrote:
Midwestindy wrote:
BN727227Ultra wrote:

Just one big enchilada hub missing: Texas. DL needs more then a focus city there. It needs a hub to connect the southeast to the Midwest/mountain west without backtracking to ATL, DTW or SLC.



Once upon a time Delta expressed interested in Dallas and Miami had American failed to get out of bankruptcy.

Consolation: Austin/Focus City/gearing for Future Hub
and Miami/LATAM
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