Delta still plans 'gateway' Miami hub with LATAM Airlines partnership
Delta Air Lines and LATAM Airlines are moving forward their plans for a broad pan-American partnership that includes a new "gateway hub" in Miami even as the industry continues to weather through the coronavirus pandemic.
Atlanta-based Delta plans to add at least 20 new U.S. domestic departures from Miami International Airport (MIA) under its proposed joint venture with LATAM, the carriers said in their application to the Department of Transportation on July 8. The new flights would include both added frequencies on existing routes as well as new routes to “hubs and top corporate travel destinations."
The airlines did not provide a timeline for the expanded Miami service citing the crisis. The additional flights are on top of Delta's pre-COVID-19 schedule in Miami that averaged 24 daily departures in 2019.
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Delta and LATAM's plans to grow under their new pact are difficult to envision today. Both airlines have culled schedules dramatically as a result of the pandemic, with LATAM even taking the drastic step to restructure under Chapter 11 bankruptcy.
In addition, most travel between the U.S. and South America is on hold owing to border restrictions in most South American countries.
Delta does not plan any flights in the market in July, according to Cirium schedules. LATAM plans to fly just three routes between Santiago, Chile (SCL) and Los Angeles (LAX) and Miami, and São Paulo Guarulhos (GRU) and Miami.
Delta and LATAM's proposed tie up would allow them to coordinate operations between the U.S. and South America. For example, they could jointly schedule flights and sell tickets, share revenues and expenses, and double up on other joint functions.
Related: LATAM Airlines hopes to speed Delta partnership through bankruptcy restructuring
The carriers tout the partnership as having big consumer benefits as well. Travelers could see as much as $54 million in annual airfare savings between the U.S. and South America as a result of the joint venture, according to the carriers' application. Much of this would come from additional competition enabled by a united Delta and LATAM.
The pact also includes reciprocal frequent flyer and lounge benefits for Delta and LATAM travelers. Some of these were implemented prior to the outbreak of the coronavirus, but more are expected under a joint venture.
Delta has similar partnerships with Aeromexico; Air France, KLM and Virgin Atlantic Airways; Korean Air; and Virgin Australia. It is also seeking a joint venture with WestJet in Canada.
Related: A country-by-country guide to coronavirus recovery
"Together with LATAM, Delta has the resources and vision to make Miami its hub of the Americas and beyond," Delta and LATAM said in their application. They plan to offer a travelers an alternative to American Airlines, which has a long-standing hub at the airport.
American and LATAM were previously partners and had sought their own joint venture prior to the unveiling of LATAM's deal with Delta last September. In addition, American is the largest carrier by passenger numbers between the U.S. and South America.
Delta has already indicated some of its Miami route ambitions. In January, it unveiled plans to add service between the South Florida airport and Orlando (MCO), Raleigh-Durham (RDU), Salt Lake City (SLC) and Tampa (TPA) later this year. Those plans are on hold as a result of the pandemic.
Related: Delta Air Lines begins Miami build up with 4 new routes
In addition to a Miami hub, Delta and LATAM plan to add at least nine new routes between the U.S. and South America under the pact. While they did not say what these could be, the application does emphasize connections between their respective hubs, including LATAM's bases in Bogotá (BOG), Lima (LIM), São Paulo Guarulhos and Santiago.
LATAM has said that it hopes to accelerate approval of the joint venture as part of its bankruptcy. However, to date there has been no move on this. LATAM has secured additional funding to bridge the crisis as well as returned at least 23 jets to their owners.
Separately on Thursday, LATAM indicated that it would include its Brazilian operation in its bankruptcy restructuring. The airline had previously excluded its subsidiaries in Argentina, Brazil and Paraguay, though it closed its Argentine affiliate in June.
Related: Delta stands by new partner LATAM, despite bankruptcy
“We have the utmost confidence in the LATAM team, and remain firmly committed to our partnership, which will be important when we rebuild our international network in the recovery,” said Delta CEO Ed Bastian told staff in May.
Bastian comments came even as Delta faces the likelihood of losing the $1.9 billion it used to purchase a 20% equity stake in LATAM in December. Delta faces a similar loss as part of Aeromexico's bankruptcy restructuring.
In recent years, U.S. authorities have typically taken their time approving new joint ventures. Delta and WestJet's proposed tie up is still pending nearly two years after their initial application in October 2018.
Related: LATAM Airlines suspends Argentina unit, ending its Miami-Buenos Aires route
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.