Delta will make new investments of approximately $1.2 billion in partners Latam, Aeromexico and Virgin Atlantic as those airlines emerge from Chapter 11 bankruptcy or restructuring.\u00a0<\/p>\n
The investments will give Delta a 20% equity stake in Aeromexico, 10% ownership of Latam and 49% ownership of Virgin Atlantic.<\/p>\n
Delta entered the pandemic with 49% ownership stakes in its joint venture partners Aeromexico and Virgin Atlantic, and a 20% stake in Latam, with which it is seeking joint venture approval from the Department of Transportation. \u00a0<\/p>\n
However, those investments have been lost during the Chapter 11 proceedings of Aeromexico and Latam and during the U.K.-overseen restructuring of Virgin Atlantic.\u00a0<\/p>\n
The losses were substantial. Delta invested $360 million in Virgin Atlantic as part of a late 2012 partnership agreement. The carrier invested $1.9 billion in Latam as part of a late 2019 deal. And Delta wrote off the $770 million value of its Aeromexico investment during the second quarter of 2020.\u00a0<\/p>\n
In a Monday announcement, Delta touted the value of re-upping its international partnerships as global travel ramps back up.<\/p>\n
“These strategic investments in our partners will transform our ability to improve travel for our customers, enabling us to deliver a seamless travel experience alongside offering our customers an unrivaled network between North American and premier markets worldwide,” CEO Ed Bastian said.<\/p>\n