LATAM and British Airways, Iberia-parent IAG drop partnership plans
LATAM Airlines is continuing its divorce from the Oneworld alliance ranks, dropping plans to form an expansive partnership with British Airways- and Iberia-parent International Airlines Group.
The Santiago, Chile-based carrier disclosed that they and IAG will not move forward with a planned immunized partnership between certain South America countries and Europe, in a securities filing on Friday. The airlines did not provide further rationale for the move.
However, LATAM and the IAG carriers will maintain their "interline agreements, codeshare agreements, contracts of access to VIP lounges" and frequent-flyer partnerships for the time being, LATAM said.
Sign up for the free daily TPG newsletter for more airline news!
LATAM's move away from IAG and its bevy of Oneworld member carriers does not come as a surprise. The Chilean carrier is in the process of exiting Oneworld as part of a new strategic partnership that it is forging with Delta Air Lines. Part of this move includes ending its codeshare with American Airlines at the beginning of February.
In addition, IAG announced a deal to buy Spain's Air Europa for $1.1 billion at the beginning of November. The acquisition aims to bolster its Madrid (MAD) hub, particularly with Air Europa's strong presence between Europe and the Caribbean and Latin America -- markets where LATAM is strong.
Air Europa is currently a member of the SkyTeam Alliance and a codeshare partner of Delta. The carrier will leave SkyTeam once the IAG deal is approved, IAG said in a November investor presentation.
Brett Snyder, founder of the travel service Cranky Concierge and author of the Cranky Flier blog, recently called IAG's Air Europa deal a "second act" in the surprising saga that was LATAM's pivot to Delta.
Asked by TPG about LATAM and IAG's decision to drop their planned partnership, Snyder said regulatory hurdles to the LATAM-IAG tie up likely trumped the Air Europa deal.
"It would be a mistake if this were in any way related to the IAG acquisition of Air Europa since it is far from certain that will be approved," he said. "Certainly regulatory problems, along with the realignment away from Oneworld, made it more challenging to push this through."
Related: LATAM will remain unaligned after Delta tie-up, Oneworld exit
In May, a Chilean court blocked the LATAM-IAG partnership in that country citing their combined market share in its decision. The court also blocked a planned pact between American and LATAM between Chile and the U.S. in the same ruling, a decision that LATAM executives have said prompted their beginning discussions with Delta.
LATAM plans to maintain some of its relationships with individual Oneworld member airlines. To date, executives have only specified Qatar Airways as an alliance member the carrier will continue to partner with.
Qatar owns a 10% stake in LATAM.
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.