This archive report was first published on 29 September 2019.
Published on September 29, 2019, Delta Airlines is poised to make a significant move in the Latin American market by acquiring a 20% stake in LATAM Airlines Group.
The $1.9 billion deal will see Delta selling its stake in Brazil's largest airline, Gol, and using newly issued debt and available cash to fund the acquisition.
As part of the deal, Delta will also provide LATAM with an additional $350 million to help it transition out of the oneworld alliance and integrate into Delta's network.
Delta will also acquire four A350 aircraft from LATAM and assume the airline's commitment to purchase another 10 A350s to be delivered between 2020 and 2025 for an undisclosed sum.
According to a statement to Reuters, Delta expressed hope that the deal would add $1 billion in revenue growth over five years.
Delta Airlines, headquartered in Atlanta, Georgia, is one of the major airlines of the United States, operating over 5,400 flights daily and serving 325 destinations in 52 countries on 6 continents.
