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Delta buys 20% of LATAM, which will exit oneworld

Flying mermaid

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Todays’ notification about Latam’s ‘In due course ‘ leaving the One World alliance is a bit of a blow having just booked and paid for return travel in Feb 2020 to Buenos Aires from Melbourne. I assume I can kiss my potential points and Status Credits goodbye? I hope my good friends at QFF services might assure me that they will honour the One World commitments and the code sharing agreement........but I am not counting on it.
I thought it took a year from notification to actually happen, so that current bookings don’t have an issue. I was concerned when Qatar were threatening to withdraw, but I was told it took awhile from notification.
 

levelnine

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Reflecting further on this development, it must have Qantas absolutely shaking in its boots.

If LATAM cancels its arrangement with Qantas, it will lose arguably its second most important partnership (behind AA).

With most other partnerships/OW alliance members, Qantas has substitutes. Eg if BA left OneWorld, it would still have EK, AY, CX, JL, AF etc to codeshare with into Europe.

Without LATAM, it currently has no substitute, and finding one would be hard. Perhaps they could convince GoL for Brazil?

And it would be absolutely devastating if LATAM codeshared with VA instead because it would flip the comparative advantage between the two airlines into a massive and growing market (South America).
 

Isochronous

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Reflecting further on this development, it must have Qantas absolutely shaking in its boots.

If LATAM cancels its arrangement with Qantas, it will lose arguably its second most important partnership (behind AA).

With most other partnerships/OW alliance members, Qantas has substitutes. Eg if BA left OneWorld, it would still have EK, AY, CX, JL, AF etc to codeshare with into Europe.

Without LATAM, it currently has no substitute, and finding one would be hard. Perhaps they could convince GoL for Brazil?

And it would be absolutely devastating if LATAM codeshared with VA instead because it would flip the comparative advantage between the two airlines into a massive and growing market (South America).
Would QF need to look at ditching SYD-SCL for direct into Rio instead for connections?
 

jase05

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Hopefully VA are getting on the front foot, would be great if they could get in on the action
 

juddles

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It may be just my perception, but LATAM and Qantas seem to have been very good buddies for many many decades. I could not believe that suddenly LATAM will go with Virgin. (Having said that I never thought they would drop out of One World either!) But, just for the pleasure of thinking it could be possible, this would really spice up the trans-pacific routes!

I do not know what load factors LATAM are getting out of their SCL-MEL direct flights, but I think it is very attractive to sth americans. If something happened to the LA/QF "friendship", then it would be open warfare between them - and apart from putting pressure on prices (which are already very good), I would expect QF to open up MEL-SCL, and then BNE-SCL. Something never really open to QF before due to large 747's, but now very fillable with 787's.
 

levelnine

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If something happened to the LA/QF "friendship", then it would be open warfare between them - and apart from putting pressure on prices (which are already very good), I would expect QF to open up MEL-SCL, and then BNE-SCL. Something never really open to QF before due to large 747's, but now very fillable with 787's.
Could also put huge pressure on Project Sunrise to deliver.

If the LATAM partnership goes south, Qantas will want to start flying direct to GIG sooner rather than later.
 

dajop

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If the LATAM partnership goes south, Qantas will want to start flying direct to GIG sooner rather than later.
I know Rio is a bit of a favourite here on AFF, but if QF are going to start services to Brazil, much more likely to be GRU than GIG. Look at the number of non-South American destinations served out of the two airports ... 15 GIG, 33 GRU. Even JFK-GIG is only seasonal, whilst year round to GRU (and UA doesn't fly EWR-GIG at all only IAH-GIG, but does fly GRU to ORD/EWR/IAH/IAD).
 
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Maybe my wishful thinking but I can't imagine DL supporting an ongoing LA/QF relationship. A DL/LA/VA joint venture seems more in line with what Ed Bastian has been saying about integrating partners around DL.
 

levelnine

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A DL/LA/VA joint venture seems more in line with what Ed Bastian has been saying about integrating partners around DL.
Exactly. It's why Ed Bastian is easily one of the sharpest CEOs in the airline business today.

In one move, he has vaulted Delta and its partners from third to first place in Latin America and relegated OneWorld to third place behind Delta and Star Alliance. A master stroke.
 

drron

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And what will happen with Qatar's 10% investment in LATAM.Does it's CEO finally spit the dummy and leave OW?
 

jase05

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Exactly. It's why Ed Bastian is easily one of the sharpest CEOs in the airline business today.

In one move, he has vaulted Delta and its partners from third to first place in Latin America and relegated OneWorld to third place behind Delta and Star Alliance. A master stroke.
With DL getting out of GOL would OW look bring in GOL as a OW connect partner?
 
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drron

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I really think there is a little too much pessimism.It will be at least 12 months until they exit OW so current bookings should be fine.
It doesn't totally destroy South America as a XONE destination as you can fly in to SCL on QF and out on AA-or other places if you don't mind an open jaw.
If you are flying a DONE then you will be in Y to most of the tourist destinations so simpler just buying those.
Of course if you don't want to go to LOTFAP then IB,BA and QR fly to and from South America.

If I were doing it again I would probably fly Avianca internally in South america and extend my life miles life. :D

The big question is how will the tie up between QF and LA go.Delta is very much a hands on investor and will have a seat on Latam's board.So I think that association with QF must have a big question mark.
 

moa999

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And what will happen with Qatar's 10% investment in LATAM.Does it's CEO finally spit the dummy and leave OW?
Would be interesting to see their reaction, presumably they would have been offered additional equity as well
Although wouldn't have been in a position to take the A350s (Qatar has a big enough order book as is)
 

drron

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And AA's press release.
 

esseeeayeenn

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or QF to SA, open jaw and buy a fare from one side of the continent to the other and then to EU on one of the other OW carriers.
True and there is a fifth freedom QR flight within SA you could use (I forget exactly where right now).
So not a total disaster, but of course the possibility of visiting Easter Island will be gone.
I wanted to get as far as PPT then have an open jaw to Nouméa, but that won't work anymore.
 

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