LATAM Bankruptcy
05-28-2020, 05:52 AM
#1
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LATAM Bankruptcy
Seeing as LATAM is Bankrupt, does that negate Delta's position as a shareholder and open them back up for a partnership with another airline with a much bigger SA presence that could feed their network better?
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05-28-2020, 05:55 AM
#2
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Originally Posted by 32Drvr
Seeing as LATAM is Bankrupt, does that negate Delta's position as a shareholder and open them back up for a partnership with another airline with a much bigger SA presence that could feed their network better?
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05-28-2020, 06:10 AM
#3
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I don't know, the press announcements look nice when the route network is robust, but Delta was to pay 1.9B for 20%.
I think it was essentially buying capacity to sell seats and generate more gross revenue. The Delta metal was at max capacity and demand dictated they could still sell. Delta pilots have complained on these forums Delta grew sales through JV.
If Latam was the cheapest way to obtain inventory for Delta to sell then they overpaid, and AA dodged a bullet.
Southwest has made money for years with an "unattractive" network, and AA now has planes and capacity to deploy down there if it was a "gold mine" and judging by their bankruptcy it isn't.
I think it was essentially buying capacity to sell seats and generate more gross revenue. The Delta metal was at max capacity and demand dictated they could still sell. Delta pilots have complained on these forums Delta grew sales through JV.
If Latam was the cheapest way to obtain inventory for Delta to sell then they overpaid, and AA dodged a bullet.
Southwest has made money for years with an "unattractive" network, and AA now has planes and capacity to deploy down there if it was a "gold mine" and judging by their bankruptcy it isn't.
Last edited by Happyflyer; 05-28-2020 at 06:42 AM.
05-28-2020, 06:37 AM
#4
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AA’s partnership with Gol might actually be more beneficial than their old one with Latam. Gol serves more destinations in Brazil than Latam (biggest market down there by far), and does not directly compete with AA on flights to the US like Latam did. 100% of Gol’s passengers coming to the US will be on AA metal. Gol is smaller in the intra-SA market, but I think LATAM may shrink to a point the difference won’t even be that significant. Except maybe in Peru.
05-28-2020, 06:58 AM
#5
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Originally Posted by sigler
AA’s partnership with Gol might actually be more beneficial than their old one with Latam. Gol serves more destinations in Brazil than Latam (biggest market down there by far), and does not directly compete with AA on flights to the US like Latam did. 100% of Gol’s passengers coming to the US will be on AA metal. Gol is smaller in the intra-SA market, but I think LATAM may shrink to a point the difference won’t even be that significant. Except maybe in Peru.
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