In late September it was announced that Delta is buying a 20% stake in LATAM, which has huge implications for the industry. American and LATAM had been pursuing a joint venture, so to see Delta invest and now pursue a joint venture with LATAM caught a lot of us off guard.
This also puts American’s position in Latin America at risk. While they’re by far the biggest US carrier in Latin America, their real dominance came from their partnership with LATAM, which is one of the largest airlines in the region.
Going forward, American is going to have to fight hard if they want to compete with the combined power of Delta & LATAM.
American Is Increasing South America Presence
As of now it looks like American does in fact intend to compete with Delta & LATAM. Just days after the Delta & LATAM announcement, American revealed that they’d increase service to Latin America:
- American will increase service from Miami to Lima as of April 7, 2020; the airline currently flies 2x daily, and will fly 3x daily with 757s when they add this new service
- American will increase service from Miami to Santiago as of winter 2020; the airline will offer a total of 2x daily flights, with the new flight being operated by a 777-200
- American will increase service from Miami to Sao Paulo as of winter 2020; the airline will offer a total of 3x daily flights, with the new flight being operated by a 777-200
LATAM Adds Another Miami Frequency
Well, now it looks like LATAM is responding to American’s response to Delta’s investment in LATAM (that makes sense, right?). 😉
LATAM will add a third daily flight between Lima and Miami as of June 1, 2020. Specifically, they will add the following frequency with a 767-300:
LA2460 Lima to Miami departing 8:30AM arriving 3:20PM
LA2463 Miami to Lima departing 3:42PM arriving 8:21PM
This complements their other two daily flights, which operate with the following schedule:
LA2466 Lima to Miami departing 12:15AM arriving 7:05AM
LA2467 Miami to Lima departing 5:35PM arriving 10:15PM
LA2462 Lima to Miami departing 12:15M arriving 7:05PM
LA2461 Miami to Lima departing 2:05AM arriving 6:44AM
Miami is already by far LATAM’s biggest US market. As it stands, LATAM operates up to the following frequencies to Miami (in some cases they operate fewer flights seasonally, but this is the most frequencies I see in the schedule for the below markets):
- 2x daily Lima flights with 767-300s
- 2x daily Santiago flights with 787-9s
- 2x daily Sao Paulo flights with 777-300s
- 1x daily Buenos Aires flight with 767-300
- 1x daily Punta Cana flight with 787-8 (continuing to Santiago)
- 1x daily Manaus flight with A319
- 2x weekly Belem flight with A320
- 2x weekly Fortaleza flight with 767-300
- 2x weekly Recife flight with 767-300
- 1x weekly Salvador de Bahia flight with 767-300
Bottom Line
Given the size of LATAM’s operation in Miami, adding a single flight might not seem like it’s that noteworthy, but I think it is. The airline is adding an extra daily flight between Lima and Miami just shortly after American is doing the same, which clearly signals to me that they intend to compete with American, and match their growth.
American also plans on increasing Santiago and Sao Paulo frequencies as of next winter, though they haven’t yet published the schedule for that. I wouldn’t be surprised to see LATAM match them on that as well when the time comes.
One has to wonder just how sustainable this competition between carriers will be. Latin America isn’t exactly the most profitable global aviation market at the moment, so to see two airlines capacity dumping in order to compete with one another seems like it should have good implications for consumers.
As the key US gateway to Latin America, Miami sure is an interesting place to be as this American, Delta, and LATAM situation emerges.
What ever delta fan club says here ..LAT and DEL partnership cant touch AA . South American loves American .Rest of them cant touch and match their nerwork to south America. And as a frequent flyer its better for me that AA opening more routes , so more seats and award availability hopefully ??And now Air Europa joining one world they gonna connect Europe to all main hubs in south and central America. So here...
What ever delta fan club says here ..LAT and DEL partnership cant touch AA . South American loves American .Rest of them cant touch and match their nerwork to south America. And as a frequent flyer its better for me that AA opening more routes , so more seats and award availability hopefully ??And now Air Europa joining one world they gonna connect Europe to all main hubs in south and central America. So here LATAM gonna be clear looser .
Other side I heard from an insider that AA planning ven more routes from Miami than they announced . And wait for the big news from AA about their new partners in south America. American definitely know how to put Latam and Deltas paid agents back in the box !!!
Latam honestly would have been better placed if Spirit bought the 20 per cent. The only places that matter to Brazilians are Miami and Orlando. Anything onwards from there is just a bonus. Delta network is by and large useless to much of the market down there. Turbulent times ahead. Long live TAM and the flying red carpet.
@Tim Dunn: Thanks for the correction. I was confusing the MCO-GRU that they tried in conjunction with MCO-MIA, for MIA-GRU + MIA-MCO. If, DL has never flown a single MIA to Latin America flight, I think they need even more luck!
Although I get that the JV between AA/LA was not approved, they basically gave preferential access to AA/MIA and IB/MAD to their competitors, which is what AV, G3 AR, etc missed out on. Great...
@Tim Dunn: Thanks for the correction. I was confusing the MCO-GRU that they tried in conjunction with MCO-MIA, for MIA-GRU + MIA-MCO. If, DL has never flown a single MIA to Latin America flight, I think they need even more luck!
Although I get that the JV between AA/LA was not approved, they basically gave preferential access to AA/MIA and IB/MAD to their competitors, which is what AV, G3 AR, etc missed out on. Great for competition (which is what I want as well), but when I think from LATAM's point of view, they are the loser.
Does anyone think AA will add new frequencies for JFK-GRU and/or JFK-EZE as a result of LATAM's marriage with DL?
LATAM trying to fight AA at MIA is foolhardy. MIA has the advantage of being a hub for AA and thus plenty of connecting/feeder traffic. LATAM will have no such advantage.
@Kannan Sankar
Please list the flights that DL has flown from MIA to Latin America.
I'll start it off for you.
Yep, that IS the list. because Delta hasn't flown MIA to Latin America except for to Havana which it still operates.
DL also has made no statements about a hub in Miami. If they have you should be able to quote it here.
and AA and Latam were and still are...
@Kannan Sankar
Please list the flights that DL has flown from MIA to Latin America.
I'll start it off for you.
Yep, that IS the list. because Delta hasn't flown MIA to Latin America except for to Havana which it still operates.
DL also has made no statements about a hub in Miami. If they have you should be able to quote it here.
and AA and Latam were and still are competitors. They were nothing more than codeshare partners. It is precisely because the Chilean Supreme Court refused to allow AA and LA/JJ to have a joint venture that DL had an opening. DL took the opening. We have no idea what they do will do with it. But there is no history of DL from MIA to Latin America to know what they will do.
What many people ignore is that LA's success (profitability) in MIA is partly attributed to AA's pulling power in Latin America. LA has been AA's partner for several years (15+ ?), and that helped them build their market in the US.
DL is not going to make money flying to Latin America from Miami. They have attempted before several times and failed. Neither their statements about a hub in MIA nor the DL fan support...
What many people ignore is that LA's success (profitability) in MIA is partly attributed to AA's pulling power in Latin America. LA has been AA's partner for several years (15+ ?), and that helped them build their market in the US.
DL is not going to make money flying to Latin America from Miami. They have attempted before several times and failed. Neither their statements about a hub in MIA nor the DL fan support is going to help LATAM make money. And neither will launching flights from SCL or LIM to ATL to capture that one single passenger traveling everyday between the cities help.
Having both AA and IB on their side was the only advantage LATAM had over Avianca, and they have given that up now. They must have been in serious trouble to go through this... Sad times ahead for LATAM, no doubt.
AA is not dominant in Latin America because of their relationship with LATAM. They are the dominant carrier in Latin America because they have a hub in Miami, which the economic and cultural capital of Latin America despite (or really because of) its location in the United States.
To suggest otherwise is silly...
American gets a lot of criticism, but I love their 772 Flagship Business product.
Let's be clear that, despite what some people want to insert into the conversation, Delta and Latam do not have any joint venture at this point and whatever schedule changes that Latam made, it was of their choosing.
Second, the notion that some people seem to repeat that DL is out to destroy AA at MIA is feebly wrong. It is equally feebly wrong that DL intends to simply add a few connecting domestic flights...
Let's be clear that, despite what some people want to insert into the conversation, Delta and Latam do not have any joint venture at this point and whatever schedule changes that Latam made, it was of their choosing.
Second, the notion that some people seem to repeat that DL is out to destroy AA at MIA is feebly wrong. It is equally feebly wrong that DL intends to simply add a few connecting domestic flights to feed Latam's network. There will be something in between - and I suspect that we will see Delta metal on some flights to deep S. America as well as to markets in the Caribbean and Central America which Latam does not serve.
Third, AA is largely re-adding capacity it pulled down. There is a reason why AA has not listed MIA as one of its most profitable hubs and why they aren't growing it. DL is simply looking ahead to the opportunity to compete in the S. Florida to Latin America market alongside AA which has had a monopoly among US legacy carriers for several decades. History shows that DL has been quite successful at pulling high revenue passengers to DL's network in markets that DL has added from RDU, SEA, BOS, and NYC.
I'm not sure where you get your info from?... Latin America is VERY VERY profitable for AA.
@Frank - you had no idea what you are talking about. Another person that needs to take a seat. Looking forward to DL sinking Billions into a Miami operation.
Here is the MEMO! Latin American citizens LOVE AA. Again, LOVE AA. Does not matter what folks in the USA think about AA. AA is King, Queen, Emperor...
I'm not sure where you get your info from?... Latin America is VERY VERY profitable for AA.
@Frank - you had no idea what you are talking about. Another person that needs to take a seat. Looking forward to DL sinking Billions into a Miami operation.
Here is the MEMO! Latin American citizens LOVE AA. Again, LOVE AA. Does not matter what folks in the USA think about AA. AA is King, Queen, Emperor and Empress down there. Lots of history, and UA and DL can never catch up. Just like in HKG where they cant stand DL and it was forced to leave. Latino's know exactly what a DELTA is (I'll leave it at that).
A passenger can still purchase a LATAM ticket to an AA departure city and sync up from there. I similar things all the time, and its no big deal. There will still be a ton of Latam passengers doing this, even if it means reclaiming bags at GRU, GIG, LIM, SCL or EZE (because again its not that hard).
@Frank, you are dreaming. AA makes money and they make a lot of money in MIA.
Latam doesn't make money. How will they win anything? Even if AA is flying 767s in a few routes, they still make money. Losing Latam isn't that huge. It's an ego boost to DL but with Latam losing the MIA hub while losing money is a recipe for disaster. Latam is 5 airlines under one umbrella. Just like...
@Frank, you are dreaming. AA makes money and they make a lot of money in MIA.
Latam doesn't make money. How will they win anything? Even if AA is flying 767s in a few routes, they still make money. Losing Latam isn't that huge. It's an ego boost to DL but with Latam losing the MIA hub while losing money is a recipe for disaster. Latam is 5 airlines under one umbrella. Just like Latam is leaving ONEWORLD LP or JJ could leave the Latam group for something better.
Stay tuned.
Frank,
keep waiting and assuming that AA will forever operate the older 757 and 767.
Every one's narrative is to assume that AA is to roll over and die and Delta is going to devastate them. The "huge blow" to AA is overstated somewhat.
No other way to fly to secondary cities? Really? For one Brazil is the biggest market so if they get GOL on board, half of the continent is solved.
Return to...
Frank,
keep waiting and assuming that AA will forever operate the older 757 and 767.
Every one's narrative is to assume that AA is to roll over and die and Delta is going to devastate them. The "huge blow" to AA is overstated somewhat.
No other way to fly to secondary cities? Really? For one Brazil is the biggest market so if they get GOL on board, half of the continent is solved.
Return to some direct flights to key secondary markets like Iquitos and Cuzco in Peru not to mention those in Brazil etc. Need I go on.
But no. Keep waiting for AA to roll over and die.
American loss is huge with the LATAM partnership. HUGE!
How will anyone fly to secondary cities in Latin American without flying AA/LA? No other way, unless on different record locator and without bag transfers.
AA screwed up.
Also, for the Lima flights, LATAM is way better than AA. AA cannot compete with those older 757s and 767s without IFE when all of LATAM flights in/out of Miami have IFE and better food.
@GuruJanitor - Fair point given all of the 767-3's they're running through MIA.
@DLPTATL - if the time is correct and not a typo, they are probably cycling birds in Miami. With 16 daily flights, it shouldn't be difficult. American does it in London, and BA at JFK, I believe.
How do they expect to turn around a 767 in 22 minutes??? Are these flight times correct?
LA2460 Lima to Miami departing 8:30AM arriving 3:20PM
LA2463 Miami to Lima departing 3:42PM arriving 8:21PM
Even Delta at ATL couldn't pull off that magic trick; no way it's happening at MIA.
Not sure how LATAM feels it’s now going to be able to fill all of its planes without any connections from AA.
it makes senses for AA to add flights as they no longer will be funneling traffic to LATAM.
Yawn, announcing one daily flight is nothing. And this is from Latam Peru. Latam is just an umbrella group but all carriers are run differently and have different owners. Latam has to first make money, something they don't seem to do. Once they make money then they can start to add flights. And things will get worse once they lose that Miami feed. And Delta cannot help them in Miami, they can't even make MIA-MCO...
Yawn, announcing one daily flight is nothing. And this is from Latam Peru. Latam is just an umbrella group but all carriers are run differently and have different owners. Latam has to first make money, something they don't seem to do. Once they make money then they can start to add flights. And things will get worse once they lose that Miami feed. And Delta cannot help them in Miami, they can't even make MIA-MCO or MIA-LAX work as well as another dozen flights they've tried.
MIA is a fortress for AA and provides the feed needed for the additional frequencies to succeed. LATAM will not have that benefit on the MIA end and Delta, despite its chest beating, has tried and so far not succeed at the long haul game from MIA (though it has added more frequency, capacity, and service to domestic destinations that are key markets, focus cities, and hubs) from MIA.
South America flights are always incredibly expensive. More competition is needed. When LATAm and AA were together, there really was no competition aside from some token Avianca stuff.
I hope we will soon be hearing about additional Delta non-stops and capacity to MIA as well.
I look forward to redeeming flights to South America around Feb 2021...
Lucky,
Doug Parker and the whole AA gang are in GRU this week.... any idea what they are up to? Maybe seal the deal with GOL?
Dont forget about guayaquil Ecuador!
Hopefully the AA addition to GRU will be the return of their day time flight.