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Delta Air Lines Purchases 20-Percent Stake in LATAM for $1.9 Billion

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Delta Air Lines announced it has agreed to purchase a 20-percent stake in Latin America’s largest airline, LATAM, for $1.9 billion.

According to airlines-m-a-delta-air/delta-buys-19-billion-latam-stake-snatching-partner-away-from-american-airlines-idUSKBN1WB2UZ” target=”_blank” rel=”nofollow noopener noreferrer”>Reuters.com, the decision to purchase a stake in the Chilean-based carrier is part of Delta’s aggressive expansion internationally through joint ventures and minority stakes. As a result, Delta plans to sell its stake in Brazilian carrier Gol, which competes with LATAM.

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The Latin American airline already offers international service between South America and the United States, as well as domestic service in key destinations such as Argentina, Brazil, Chile, Colombia, Ecuador and Peru.

Delta’s purchase of LATAM stake still needs approval from U.S. and Chilean regulators.

“This transformative partnership with LATAM will bring together our leading global brands, enabling us to provide the very best service and reliability for travelers to, from and throughout the Americas,” Delta CEO Ed Bastian said in a statement. “Our people, customers, owners and communities will all benefit from this exciting platform for future growth.”

The deal is a marquee win for Delta over American Airlines, which was heavily pursuing a joint venture with LATAM. American and LATAM are both part of the OneWorld alliance of airlines, but the Latin American carrier recently announced it would be leaving the group.

American Airlines released an official statement on the Delta-LATAM deal:

LATAM and the Cueto family have been terrific partners of American Airlines for decades. Given the recent negative ruling by the Chilean Supreme Court, which would have significantly reduced the benefits of our partnership since Chile was not approved as a part of the potential joint business arrangement, we understand LATAM’s decision to partner with a U.S. carrier that isn’t burdened by the ruling.

Further, this change in partnership is not expected to have a significant financial impact to American, as the current relationship provided less than $20 million of incremental revenue to American, and the proposed joint business without Chile would have provided limited upside. During the transition period, American will work with LATAM to ensure a seamless experience for customers.

American Airlines remains the largest U.S. carrier to both Latin and South America and we look forward to competing and growing in this region of the world.

This post was published by our news partner: TravelPulse.com | Article Source |

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Emirates Announces Firing Employees Amid the Pandemic

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Emirates Airline, the last holdout among the Gulf region‘s three major East-West carriers in retaining its workforce announced on May 31, 2020, that it had fired an undisclosed number of employees, due to the near-shutdown of global air travel amid COVID-19.

The other two—Abu Dhabi’s Etihad and Doha-based Qatar Airways—had already scaled back in terms of staffing as the virus spread, virtually eliminating passenger demand and causing international borders to slam shut.

While Emirates has been applauded during the pandemic for continuing to run repatriation flights around the globe, as well as delivering cargo and critical supplies, it has been dramatically affected by the halting of international passenger travel, just like the rest of the world’s airlines.

In a statement, the company said, “We have endeavored to sustain the current family as is…but have come to the conclusion that we, unfortunately, have to say goodbye to a few of the wonderful people that worked with us.”

Without revealing any particulars of the mass firing, Emirates assured that those being axed from its workforce would be treated, “with fairness and respect.”

ABC News reported that to try and balance some of the immense losses the airline continues to suffer, Dubai’s Crown Prince, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, injected an undisclosed amount of equity into its operations back in March.

Although the flag carrier, owned by a Dubai sovereign wealth fund, had already reduced its staff members’ pay during the course of the global health crisis.

Meanwhile, Emirates’ home base, Dubai International Airport—typically the world’s busiest in terms of international passenger traffic—has also been running only a fraction of its normal operations.

Dubai, which has positioned itself as a critical hub for the free movement of people, goods and capital from around the globe (all of which the pandemic has disrupted), now depends heavily upon a resumption of activity at its airport.

For more information, visit emirates.com.

This post was published by our news partner: TravelPulse.com | Article Source

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