Delta Air Lines (DL, Atlanta Hartsfield Jackson) and LATAM Airlines Group have promised the creation of a partnership between North and South America with a combined network of 300 destinations, after their joint venture received the final all-clear and anti-trust immunity from the US Department of Transportation (DOT) on September 30.

Involving Delta and LATAM Airlines Brasil, LATAM Airlines Colombia, LATAM Airlines Perú, and LATAM Airlines Paraguay, the partnership will see expanded route offerings in all the players' markets, improved connections, and a strengthening of codeshare routes and reciprocal loyalty benefits already in place, the parties said in a statement. More details will be provided in the coming months.

"Delta's partnership with LATAM will help grow the market between North and South America and provide significant and much-needed benefits for customers, and we applaud the DOT for this final approval," commented Delta's CEO Ed Bastian.

His views were echoed by LATAM Airlines Group CEO Roberto Alvo: "The approval by the DOT will give rise to the start of work with Delta to deliver more and better benefits to LATAM and Delta customers. [...] I am sure that, over time, we will be able to offer the best connections while incorporating a sustainable view of the future."

According to the regulatory filing, the airlines submitted their application for antitrust immunity to the DOT on July 8, 2020, promising increased capacity and lower fares. On June 23, 2022, the department tentatively approved the application, subject to conditions such as maintaining third-party interline agreements, removing exclusivity provisions, complying with a ten-year expiration and self-assessment requirement, and removing capacity constraints. It also required the applicants to provide interline access for feeder flights for new entrants in the US and Canada to South America.

The application before the DOT faced some opposition from the Air Line Pilots Association (ALPA), and the Delta Master Executive Council of ALPA argued for a capacity allocation to ensure that Delta pilots receive a fair share of new flying generated by the venture. Their arguments were supported by the American Federation of Labor & Congress of Industrial Organisations (AFL-CIO), which argued for the retention of a clause that would prevent outsourcing to less expensive foreign pilots.

In its final decision, the DOT concluded that no changes to its tentative decision were necessary to address the issues raised. It said that a future Miami hub was a notable benefit expected from the joint venture, with the majority flying expected to be operated by Delta or its affiliates as it involved domestic flights supported by connecting traffic to/from South America.

The partners said milestones already achieved included mutual frequent flyer mile accumulation and redemption; reciprocal loyalty benefits; shared terminals at hubs like New York JFK, São Paulo Guarulhos, Brazil; and Santiago de Chile; and mutual access to each other's airport lounges. In 2020, they introduced their first codeshares in South America. In 2021, they expanded these to 20 US-South American routes plus connections to domestic and regional destinations from their hubs in Atlanta Hartsfield Jackson, New York, Los Angeles International, Santiago, Lima International, Bogotá, and São Paulo.