Delta begins GOL separation in pivot to LATAM Airlines

Dec 11, 2019

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

Delta Air Lines has taken the next step in its new partnership with LATAM Airlines, selling its stake in GOL ahead of a divorce from the Brazilian carrier.

Atlanta-based Delta had sold its 9% stake in GOL by the close-of-business on Dec. 10, the latter airline said on Tuesday. The amount of the sale, which occurred over several days, was not disclosed.

Delta valued its stake in GOL at $256 million at the end of September.

Sign up for the free daily TPG newsletter for more airline news!

The sale was expected following Delta’s tie-up with LATAM. Delta CEO Ed Bastian said in September that the airline would “regrettably be exiting” its stake in GOL whose network was limited to just Brazil. LATAM’s network, by comparison, covers South America with major bases in Lima (LIM), Santiago (SCL) in Chile, and São Paulo (GRU).

Delta and GOL are also expected to end their codeshare, frequent flyer and lounge partnerships, though no timeline has been given.

Susannah Thurston, a spokeswoman for Delta, confirmed that the sale was a step towards the airline’s strategic partnership with LATAM.

Delta and LATAM plan form a joint venture covering flights between South America and the U.S. They expect to reach a pact, which will allow them to operate as essentially a single airline in the market, next year with regulatory approvals likely stretching into 2021.

Related: GOL seeking new North American partner after Delta departure

GOL executives have said the airline is seeking new partners, with many expecting a tie up with American Airlines.

American and LATAM will end their codeshare partnership on Feb. 1, and the latter will exit the Oneworld alliance by the end of September.

GOL is the largest carrier in Brazil. The airline carried nearly 37% of the 78.3 million passengers that flew in the country between January and October, data from Brazil’s aviation regulator ANAC show. LATAM had a 32% share over the same period.

Related: The best credit cards for airline lounge access

Featured image by Fabrizio Gandolfo/SOPA Images/LightRocket via Getty Images.

Delta SkyMiles® Platinum American Express Card

Earn 90,000 bonus miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new card in the first three months of card membership. Offer ends 11/10/2021.

With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.

Apply Now
More Things to Know
  • Limited Time Offer: Earn 90,000 Bonus Miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new Card in your first 3 months. Offer expires 11/10/2021.
  • Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
  • Earn 3X Miles on Delta purchases and purchases made directly with hotels.
  • Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
  • Earn 1X Miles on all other eligible purchases.
  • Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
  • Enjoy your first checked bag free on Delta flights.
  • Fee Credit for Global Entry or TSA Pre✓®.
  • Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
  • No Foreign Transaction Fees.
  • $250 Annual Fee.
  • Terms Apply.
  • See Rates & Fees
Regular APR
15.74%-24.74% Variable
Annual Fee
$250
Balance Transfer Fee
N/A
Recommended Credit
Excellent/Good
Terms and restrictions apply. See rates & fees.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.