Delta is buying 20% of LATAM

[Greg]

Delta Air Lines is expanding its presence in Latin America by spending $1.9 billion for a 20% stake in LATAM, Latin America’s largest airline, a twist for Delta rival American Airlines that had pursued a joint-venture with the Chilean-based carrier to grow revenue in the region.

Delta’s announcement is the latest example of how the Atlanta-based airline is aggressively expanding abroad through joint ventures or minority stakes with other carriers.

Foreign ownership rules prevent airlines from buying foreign carriers outright, so airlines have been increasingly turning to minority stakes and revenue-sharing joint ventures to gain exposure to other markets.

Delta said expects to exit its stake in Brazilian carrier Gol, which competes with LATAM in Brazil. Delta’s latest annual filing showed it had a 9% in Gol.

CNBC