Strategic Alliance Creates Largest Airline Network in South America
LATAM and Aerolíneas together are arguably the largest alliance in South America
In a move set to reshape air travel in South America, Aerolíneas Argentinas and LATAM Airlines have forged a landmark codeshare agreement and reciprocal loyalty programs, effectively creating what’s arguably the largest airline alliance in South America.
The agreement opens up new possibilities for travelers by allowing the sale of tickets on both domestic and regional routes within each other’s networks. This means passengers can now seamlessly book flights to over 140 destinations across the continent, benefiting from the extensive reach of both airlines. Additionally, the joint loyalty program will allow members of LATAM Pass (48 million strong) and Aerolíneas Plus (over 4 million) to accrue and redeem miles across both airlines, offering greater flexibility and reward opportunities.
This strategic partnership arrives at a unique juncture.
With Argentine President Javier Milei openly expressing his intention to privatize the national flag carrier, Aerolíneas Argentinas, the deal raises speculation about the potential acquisition by LATAM, a privately-held airline giant. A LATAM source, speaking to Infobae on condition of anonymity, commented, “LATAM is focused on this agreement, for the moment because it significantly increases the local offer.”
LATAM’s
decision to re-enter the Argentine market through this partnership is significant. This comes after the airline closed its Argentine subsidiary in 2020, during the height of the global pandemic, citing competitive disadvantages and alleged preferential treatment given to Aerolíneas Argentinas by the previous administration.
Before the pandemic, LATAM was the largest airline in Latin America, operating a network spanning Chile, Peru, Colombia, Ecuador, and the United States. In 2020, the airline underwent a significant restructuring process as a result of the global health crisis, emerging stronger and ready for new opportunities. Currently, LATAM operates approximately 27 international flights from Argentina through its subsidiaries located in neighboring countries.
The new codeshare agreement unlocks access to an extensive network reaching 55 domestic destinations in Brazil, 37 in Argentina, 21 in Peru, 19 in Colombia, and 8 in Ecuador. This path stretches further with regional initiaties covering routes between Brazil, Colombia, Paraguay, Peru, Uruguay, and Argentina.
“Travel options for customers are expanding, reaching multiple destinations in Argentina and the region,” said Soledad Berrios, LATAM Group’s Director of Strategic Alliances. “These agreements provide greater benefits as a result of Aerolíneas Argentinas’ extensive network of destinations, which strengthens the LATAM Group’s flight connectivity in the region.”
Leandro Serino, Aerolíneas Network Planning Manager, echoed the sentiment: “This agreement will allow us to strengthen our Aerolíneas Plus program and expand the range of destinations in the region for our passengers, in addition to giving LATAM customers the possibility to take advantage of the entire range of local flights.”
While this partnership represents a significant shift in the South American airline landscape, it also raises questions about the future. Industry analysts expect to see how this development might affect Aerolíneas Argentinas’ existing partnerships with other airlines, particularly those considered direct competitors of LATAM.
- What prompted LATAM’s return to the Argentine market through this partnership after previously exiting in 2020?
## South America Takes Flight: A New Airline Partnership
**Host:** Joining us today to discuss the groundbreaking alliance between LATAM Airlines and Aerolíneas Argentinas is Alex Reed, an aviation expert and analyst. Welcome to the show.
**Alex Reed:**Thanks for having me.
**Host:** This partnership appears to be a game-changer for air travel in South America. Can you tell us more about its key features?
**Alex Reed:** Absolutely. Essentially, LATAM and Aerolíneas Argentinas have struck a codeshare agreement and are implementing reciprocal loyalty programs. This means passengers can now book flights on either airline and access a network reaching over 140 destinations across the continent.
**Host:** That’s impressive. So, travelers essentially have a much wider range of choices and connections at their fingertips. What about the loyalty program aspect?
**Alex Reed:** That’s right. Members of LATAM Pass and Aerolíneas Plus can now earn and redeem miles across both airlines. This opens up a wealth of options for frequent flyers and offers greater flexibility and reward opportunities.
**Host:** Interesting. This comes at a time when Argentina is considering privatizing Aerolíneas Argentinas. Do you think this partnership might be a prelude to a potential acquisition by LATAM?
**Alex Reed:** It’s certainly a possibility. As you mentioned, President Milei has expressed his intent to privatize the airline. While LATAM has stated their current focus is on expanding their foot hold in the Argentinian market, it wouldn’t be surprising if this partnership was a strategic move towards a potential acquisition further down the line. [[1](https://www.flightconnections.com/route-map-latam-la)]
**Host:** It’ll be interesting to see how this unfolds. LATAM had previously exited the Argentine market in 2020. What prompted their return through this partnership?
**Alex Reed:** LATAM cited competitive disadvantages and alleged preferential treatment given to Aerolíneas Argentinas by the previous administration as reasons for their exit. This new partnership allows them to re-enter the market strategically, leveraging Aerolíneas Argentinas’ existing infrastructure while expanding their reach across South America.
**Host:** A fascinating development in the world of aviation. Thank you for sharing your insights with us today, Alex Reed.
**Alex Reed:** My pleasure.
