Delta swings from market weakness to strength in Latin America

SAO PAULO: A surprise US$1.9 billion investment by Delta Air Lines in LATAM Airlines Group is likely to fire up competition in South America as the weakest U.S. carrier in the region joins up with the strongest homegrown player.

"This shows you that the partnership ultimately ended up undermining supply," said Carlos Ozores, a principal at consulting company ICF."There was no competition because these were two carriers that coordinated their fares and worked as one."American said it had"expanded routes and lowered prices" as a result of its coordination with LATAM in Chile and Peru.

"American and LATAM had a number of overlaps that created issues," Delta Chief Legal Officer Peter Carter told investors last month."And we just don't have that here."American said in a statement it"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."

In recent years, Delta has grown frustrated with the Gol partnership, which did little for its South American push beyond Brazil. LATAM and Avianca have broader regional ambitions, investing in domestic airlines outside their home markets.

Россия Последние новости, Россия Последние новости

Similar News:Вы также можете прочитать подобные новости, которые мы собрали из других источников новостей

Samsung's stock is signaling a bottom for the global chip marketSEOUL (BLOOMBERG) - Investors have grown increasingly bullish on Samsung Electronics Co ahead of its Tuesday (Oct 8) results report, betting that the global memory-chip cycle is near a bottom.. Read more at straitstimes.com.
Источник: The Straits Times - 🏆 8. / 63 Прочитайте больше »

Europe: Stocks slide at open[LONDON] European stock markets dropped at the start of trading on Monday, with London's benchmark FTSE 100 index down 0.3 per cent to 7,136.64 points. Read more at The Business Times.
Источник: BusinessTimes - 🏆 15. / 51 Прочитайте больше »