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.
Sign up for the free daily TPG newsletter for more airline news!
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
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | 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. |
| 4X | 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. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
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 $8,000 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.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.