ATLANTA (AP) — Delta Air Lines is paying $1.9 billion for 20% of Chile's Latam Airlines Group as part of a broader deal that will expand the U.S. carrier's reach in South America.
Delta is swooping in after rival American Airlines ran into opposition from Chile's Supreme Court to its planned joint venture with Latam.
American said Thursday it understood Latam's decision to partner with another U.S. airline. American says it's getting less than $20 million a year from its current alliance with Latam.
Delta says it will pay $16 a share, funded with new debt and cash. Delta also is investing $350 million to kick-start the partnership.
It will get four Airbus A350 jets from Latam and take over its commitment to buy 10 more through 2025.
The deal needs regulatory approval.