CEO Blog

15 October 2019

Written by Ravindra Bhagwanani on . Posted in Archives

LA-DL

After the Chilean authorities put a veto on the planned joint venture between LATAM and American Airlines, LATAM changed the game completely and announced in a surprise move that it would leave the oneworld alliance – because Delta took a 20% share in the carrier. What that will mean for LATAM Pass members remains to be seen. No formal date for leaving oneworld has yet been announced (although this could happen rather quickly) and it could also be the case that LATAM might maintain several of its existing FFP partnerships with oneworld members, for instance with British Airways, Iberia and Qantas, very much as China Southern keeps on doing with most of its former SkyTeam partners almost one year after having formally left the alliance. This is even more likely since LATAM shows no signs to intend to join the SkyTeam alliance. As a result, Delta will sell its stake in Gol – LATAM’s strongest competitor in Brazil, what is also likely to put an end to their close FFP relationship. The other question is whether Qatar Airways will retain its 10% stake in LATAM no longer being a oneworld member. In a parallel move, LATAM has now unified its three programs LATAM Pass, LATAM Fidelidade and Multiplus under the common roof of LATAM Pass.