THE recent approval by the US Department of Transport (DOT) for the joint venture between Delta Air Lines and Latam Group is expected to benefit cargo shippers through greater route offerings, efficiency and capacity.
The green light from regulators allows the companies to implement the deal initially struck in late 2019 and coordinate relevant operations, reports American Shipper.
The DOT's September 30 order said granting antitrust immunity to Delta and Latam, the largest carrier in Latin America, would benefit the public because alliances allow domestic carriers to allocate more capacity to the market than they otherwise would and that Delta likely would handle a greater share of the joint venture's services.
The joint venture opens operational and commercial opportunities for cargo synergies. Antitrust immunity gives the companies the right to cooperate on pricing and cross-sell their respective networks, and use each other's trucking networks and warehouses.
'They are a world-class cargo player. From a customer perspective, the combination is complementary in terms of networks, access to commodities in the South American market and being able to more broadly distribute cargo using the joint venture network,' said Robert Walpole, Delta's vice president of cargo operations.
In an interview, Mr Walpole noted that the joint venture's scope is limited to cargo carried in passenger aircraft and doesn't cover the 15 Boeing 767-300 freighters that supplement Latam's passenger network. Delta Cargo is still able to transfer cargo to Latam's cargo fleet through traditional interline agreements.
'We're now working with our planning teams on how and where we will go about' integration, Delta's cargo chief said.
Airfreight experts say the two cargo teams will also be able to drive efficiency and reduce costs in areas such as network planning, ground handling, ground transportation and marketing.
Mr Walpole said the two companies need to evaluate how their truck feeder networks fit together and if consolidation is possible.
Delta also has joint ventures with Korean Air, Air France-KLM and Virgin Atlantic.
SeaNews Turkey
The green light from regulators allows the companies to implement the deal initially struck in late 2019 and coordinate relevant operations, reports American Shipper.
The DOT's September 30 order said granting antitrust immunity to Delta and Latam, the largest carrier in Latin America, would benefit the public because alliances allow domestic carriers to allocate more capacity to the market than they otherwise would and that Delta likely would handle a greater share of the joint venture's services.
The joint venture opens operational and commercial opportunities for cargo synergies. Antitrust immunity gives the companies the right to cooperate on pricing and cross-sell their respective networks, and use each other's trucking networks and warehouses.
'They are a world-class cargo player. From a customer perspective, the combination is complementary in terms of networks, access to commodities in the South American market and being able to more broadly distribute cargo using the joint venture network,' said Robert Walpole, Delta's vice president of cargo operations.
In an interview, Mr Walpole noted that the joint venture's scope is limited to cargo carried in passenger aircraft and doesn't cover the 15 Boeing 767-300 freighters that supplement Latam's passenger network. Delta Cargo is still able to transfer cargo to Latam's cargo fleet through traditional interline agreements.
'We're now working with our planning teams on how and where we will go about' integration, Delta's cargo chief said.
Airfreight experts say the two cargo teams will also be able to drive efficiency and reduce costs in areas such as network planning, ground handling, ground transportation and marketing.
Mr Walpole said the two companies need to evaluate how their truck feeder networks fit together and if consolidation is possible.
Delta also has joint ventures with Korean Air, Air France-KLM and Virgin Atlantic.
SeaNews Turkey