Chilean antitrust regulators have approved Delta Air Lines and Latam's proposed joint venture, Delta announced Friday.
First announced more than two years ago, Delta and Latam plan to build a strategic partnership that will build upon Delta's partnership with Aeromexico. The carriers already have struck some codesharing agreements and have started offering reciprocal benefits to their respective frequent flyers. Delta also has taken a 20 percent stake in Latam as a part of the deal.
Chile was the stumbling block for Latam's previous plans of a partnership with American Airlines. While Chile's antitrust tribunal had approved the partnership, a later ruling by Chile's Supreme Court blocked the joint venture. Delta executives had said they did not expect the same challenges, as their network had few overlaps with Latam compared with American's network.
Delta said the approval process with the U.S. Department of Transportation, filed in July 2020, is ongoing. Brazil's competition authority approved the deal last year.
Latam also is undergoing restructuring under Chapter 11 protection largely as a result of the extraordinary capacity reductions required at the onset of the Covid-19 pandemic. The Latam Group on Thursday reported that a judge in the Southern District Court of New York had approved a request to extend the deadline for the group to present its reorganization plan to Nov. 26.