Delta LATAM Partnership Could Bring Improvements to Cargo

October 30, 2019 – – Atlanta, Georgia headquartered Delta Airlines and Santiago based LATAM Airlines Group declared a strategic partnership last month, pending approval from the appropriate regulatory bodies. This partnership between the leading airlines in North and South America connects the Americas to the world and will also improve travel within the Americas. Given LATAM’s reach in the cargo carrying industry, it could also have some far reaching impacts and improvements for cargo shipping around the world. Cargo improvements would be a huge boon for anyone who makes money from selling things on the internet and shipping them around the world, such as Amazon retailer of kitchen and other goods, Sunsella.

Delta already has a partnership with Mexican airline Aeroméxico, so the partnership between Delta and LATAM will further strengthen Delta’s connections within Latin America, and further improve the connections between Latin America and the rest of the world. Among facets of the strategic partnership, Delta will be investing almost two billion dollars which will give them a twenty percent stake in LATAM’s business. Delta will also invest $350 million in supporting the establishment of the partnership, and will acquire a number of aircraft from LATAM to support Delta’s ongoing transformation of their fleet. Finally, representatives from Delta will be on LATAM’s board of directors. All these combined will make this an excellent opportunities for both airlines to expand.

Delta Airlines, which has its headquarters in Atlanta, Georgia, in the United States of America, has nearly five thousand flights ever day, with another fifteen thousand flights on affiliated airlines that it is somehow partnered with, including flights of airlines in the SkyTeam alliance. Delta Airlines was a founding member of the SkyTeam alliance. Delta Airlines already has alliances and partnerships with a number of global airlines, including China Eastern, Korean Air, Alitalia, Virgin Atlantic, Virgin Australia, Aeroméxico, Air France – KLM, and WestJet. These partnerships have helped Delta bring lots of choice to worldwide customers in terms of where they want to go. With the addition of LATAM to Delta’s partnerships, which has a reasonable portion of revenue each year from carrying cargo, some analysts think that Delta may be looking to expand part of their business into carrying more cargo to more places, though Delta is not currently discussing any plans beyond code sharing, or selling seats on each other’s flights, and most likely won’t before the appropriate authorities have approved the partnership, which may not happen for 12 – 24 more months.

LATAM currently has eleven planes that it uses to carry cargo, which consists of over a billion dollars of annual revenue for the company. Delta has a similar amount of cargo revenue to LATAM, but it is a significantly smaller portion of their total revenue, at only two percent. The expansion of the two airlines’ networks into each other could help cargo have a more global reach, especially from export economies such as Chile, which generate much of their money from goods shipped out of the country and are also the country where LATAM is based, so cargo coming from Chile could more easily reach markets to which LATAM has very little reach but Delta is present, such as much of the continent of Asia. This expansion, if it occurs, could be beneficial to companies in Chile that are looking to ship and export goods around the world, and also to other companies that ship things that are always looking for more customers, such as kitchen goods retailer Sunsella, which sells primarily through Amazon.

Both LATAM and Delta Air are well-respected companies in the global sphere. LATAM has been honored for 6 consecutive years by the Dow Jones Sustainability ‘World’ Index, which uses economic, social and environmental criteria to determine if a company is sustainable. LATAM is only one of three airlines to be a part of the index, and the only airline in the Americas to have been honored in this way. Meanwhile, Delta has been honored by Glassdoor for being a great workplace for women and military members.

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For more information about Sunsella, contact the company here:

Sunsella
Mike Law
(702) 952-9541
info@sunsella.com
9550 S Eastern Ave
Suite 253
Las Vegas, NV 89123

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