Aviation

Delta and LATAM Airlines Group S.A

Delta and LATAM Airlines Group S.A. (“LATAM”) today announced that they have entered into a strategic partnership that for the first time combines the strengths of the leading airlines in North and Latin America.

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The strategic partnership will unlock new growth opportunities, building upon Delta’s and LATAM’s global footprint and joint ventures worldwide, including Delta’s existing partnership with Aeroméxico. With their complementary networks, Delta, LATAM and their partners will be able to offer access to a greatly expanded array of worldwide destinations. Together, the partnership will provide greater customer convenience, a more seamless travel experience and better connect customers with the rest of the world.

Additional details of the partnership include:

Delta will invest $1.9 billion for a 20 percent stake in LATAM through a public tender offer at $16 per share, to be funded principally with newly issued debt and available cash.
Delta will also invest $350 million to support the establishment of the strategic partnership.
Delta will acquire four A350 aircraft from LATAM and has agreed to assume LATAM’s commitment to purchase 10 additional A350 aircraft to be delivered beginning in 2020 through 2025, supporting Delta’s ongoing fleet transformation.
Delta will be represented on LATAM’s Board of Directors, further strengthening the relationship.
The tender offer and the strategic partnership are subject to customary closing conditions and all required governmental and regulatory approvals, including anti-trust immunity.
Why LATAM retired its entire A350s fleet?

Partnership brings together the leading airlines in North America and Latin America, connecting the Americas to the world as never before.
Together, Delta and LATAM will hold the leading position in five of the top six Latin American markets from the U.S.
Together, the partners will serve 435 destinations worldwide and carry more passengers between North America and Latin America than any other partnership.
Customers will benefit from significantly expanded travel choices across the Americas and an industry leading customer experience.

Related Topics:Delta Airlines latam airlines US airways

Aviation

Airbus and French Aerospace Firms Growing Exports from India

In a significant move to bolster its supply chain, European aerospace giant Airbus has announced plans to ramp up component sourcing from India, tapping into the country’s vast opportunities.

During a press briefing in New Delhi on October 7, CEO Guillaume Faury emphasized the strategic importance of India within the Airbus supply chain, highlighting the company’s robust network of over 100 suppliers in the region.

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Faury, who also serves as Chairman of the French Aerospace Industries Association (GIFAS), noted that there are abundant prospects for collaboration between Indian and French aerospace companies. Leading a high-level delegation from GIFAS, comprising more than 60 companies and over 100 representatives, Faury aims to foster deeper partnerships and enhance business opportunities between India and France.

“We will continue to grow our sourcing of components,” Faury stated, forecasting a doubling of component sourcing approximately every five years over the next decade. This stable growth trajectory underscores Airbus’s commitment to deepening its ties with India.

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Currently, Airbus holds an impressive order book of around 8,600 aircraft and anticipates producing about 770 planes this year. This ambitious production plan aligns with the expected surge in India’s domestic air passenger traffic, projected to reach 300 million by 2030, according to Union Aviation Minister K Rammohan Naidu.

During the briefing, Naidu also highlighted the substantial investments being made to develop India’s airport infrastructure, with $11 billion allocated for this purpose. The government plans to develop 200 additional airports over the next 20 to 25 years, significantly expanding the current count of 157 airports, heliports, and waterdromes. By the end of 2025, the number of operational airports is expected to reach 200.

“The potential for partnership between India and France is immense,” Naidu remarked, further reinforcing the collaborative spirit that Airbus and French aerospace firms seek to cultivate in India.