Delta Air Lines has announced it is making investments totaling $1.2 billion in three foreign carriers, Virgin Atlantic, Aeromexico and LATAM.
At the outset of the pandemic, Delta held 49 percent ownership stakes in its joint venture partners Aeromexico and Virgin Atlantic, and a 20 percent stake in LATAM, with which it is seeking joint venture approval from the US Department of Transportation.
However, those investments have been lost during the Chapter 11 proceedings of Aeromexico and LATAM and during the UK-managed restructuring of Virgin Atlantic.
All three carriers are emerging from restructuring or recapitalization. LATAM filed its reorganization plan in November and is anticipating approval in March.
When all three carriers complete their respective financial processes, Delta is targeting a 20 percent equity stake in Aeromexico and a 10 percent equity stake in LATAM. Delta will also retain its 49 percent equity stake in Virgin Atlantic.
In announcing the deals, Delta said the investments bolster the airline’s global platform providing customers “an enhanced network, seamless connectivity and an elevated experience,” as well as fueling business growth for Delta, its employees and its partners.
Prior to the pandemic, Delta was achieving record international growth attributed to a combination of organic growth and its global partner network.
Ed Bastian, CEO of Delta, said the investments will enable the carrier to deliver “a seamless travel experience alongside offering its customers an unrivaled network between North American and premier markets worldwide.”