Latam takes a risky leap into Delta's arms

[jimntx]

Cranky Flyer's take on the Delta Latam marriage. While Delta purchase of 20% of Latam is good for Delta, maybe not so much for Latam. Problem is in connections in U.S. Latam can not simply move it's U.S.operations to Atlanta. Connecting flights to U.S destinations in Miami exist primarily to serve local market, not inbound flights from South American. Good read. Enjoy.

https://crankyflier.com/2019/10/01/latam-takes-a-risky-leap-into-deltas-arms/


(I had a hard time deciding where to place this thread. Most of the comment regarding this issue has been on American's forum since it is the most affected by the Delta purchase of share of Latam.)

 

[jimntx]

My question here is what about the long term effects? If this purchase is not good for Latam, I don't see how it could be a good idea for Delta over time. Building up MIA to accommodate Latam's connection needs requires aircraft which as we all know is an expensive solution to any problem. Then what happens if the connecting traffic does not move over to Delta? Discuss.

 

[eolesen]

Delta seems to think they can buy their way into the boardroom and take the Delta way of doing things overseas. It's worked to some degree at AeroMexico and Virgin Atlantic. Time will tell if it works with LATAM.

As for aircraft to build up MIA... My guess is that DL could shift 20 flights a day away from ATL and over to MIA and it would have zero impact on ATL's profitability. They're also getting 14 widebodies as part of the deal.

 

[jimntx]

I understand that, but as CF pointed out...a lot of flying from MIA which matters to incoming LATAM passengers is there primarily for local traffic. ATL does not have that same local traffic,does it?

 

[NewHampshire Black Bears]

I understand that, but as CF pointed out...a lot of flying from MIA which matters to incoming LATAM passengers is there primarily for local traffic. ATL does not have that same local traffic,does it?

Great point as Usual, Jim !!

 

[eolesen]

Doesn't matter what ATL has. Take the planes, put them into markets that the LATAM demand is for, and DL will have that as a captive audience and likely pick up some of the local traffic as well.