Delta Air Lines will acquire a LATAM type A350 aircraft

Delta Air Lines will acquire the Airbus A350 from the South American holding group LATAM. The news comes as Delta has announced the purchase of 20% of the oneworld carrier. At the same time, American Airlines announced that it would not expand its partnership with LATAM given this news.

LATAM is a group of Chilean airlines. It was founded in 2012 when the airlines LAN and TAM were merged. From now on, the airline's relationship will grow as Delta announces its intention to acquire a 20% stake in LATAM pending regulatory approval. The agreement includes the transfer of 14 Airbus A350 aircraft.

Airbus A350 Transfer

For me, the highlight of this agreement is undoubtedly the transfer of Airbus A350 from LATAM to Delta. Let's take a look at the current situation in Airbus order books. As of August 31, Airbus' order books indicated a total of 50 Airbus A350s ordered by both companies.

Delta Air Lines has ordered 25 Airbus A350-900s, including 13 delivered and operational. LATAM also ordered 25 A350s. It includes 17 A350-900s and 8 A350-1000s. Twelve of these orders have been delivered, while seven are operational.

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However, although the total number of Airbus A350s ordered does not change at the moment, their distribution will depend on them. Delta needs to take four of LATAM's existing A350 Airbuses. However, what becomes more interesting is that Delta has "Agreed to assume the commitment of LATAM to buy 10 additional A350 aircraft that will be delivered from 2020 until 2025."

What about the rest of the transaction?

Of course, the deal between Delta Air Lines and LATAM is not just about Airbus A350s. Delta Air Lines will invest $ 1.9 billion in a 20% stake in LATAM. The American airline says it's $ 16 per share.

In addition to this figure, Delta also announced a $ 350 million contribution to create a strategic partnership between it and LATAM. Finally, as part of the agreement, Delta will be represented on the LATAM Board of Directors. As always, the announced transaction is subject to the approval of the relevant regulators.

Ed Bastian, Delta CEO, said of the partnership: "This transformative partnership with LATAM will bring together our leading global brands, enabling us to provide the best and most reliable service to travelers to, from and across America."

Enrique Cueto Plaza, CEO of LATAM, said: "This alliance with Delta strengthens our company and strengthens our leadership in Latin America by providing the best possible connectivity through our highly complementary route networks."

What do you think of this new partnership between airlines? Let us know your thoughts in the comments.