Delta Air Lines is investing $1.9 billion in LATAM Airlines Group, representing a 20% stake in the Chile-based airline, Delta says on 26 September. Delta and LATAM will serve 435 destinations worldwide through the partnership. As part of the deal, Delta will buy four A350 aircraft from LATAM and will assume LATAM’s commitment to purchase 10 additional A350 aircraft to be delivered beginning in 2020. “This transformative partnership with LATAM will bring together our leading global brands, enabling us to provide the very best service and reliability for travelers to, from and throughout the Americas,” says Delta chief executive Ed Bastian. Delta will get seats on LATAM's board of directors and will invest an additional $350 million in the partnership. Delta's stock price rose by 0.81% on 26 September and closed at $58.78. Shortly after the announcement from Delta, American Airlines released a statement saying it understands LATAM’s decision to partner with a US carrier that isn’t burdened by "a recent negative ruling by the Chilean Supreme Court, which would have significantly reduced the benefits of our partnership since Chile was not approved as a part of the potential joint business arrangement". American and LATAM had been applying for a joint venture and had run into snags in a Chilean court in May. American and LATAM dropped Chile from the application in August. "This change in partnership is not expected to have a significant financial impact to American, as the current relationship provided less than $20 million of incremental revenue to American, and the proposed joint business without Chile would have provided limited upside," American says in the statement.

Source: FlightGlobal

British Airways parent IAG has put the cost of the UK flag carrier's pilot strike, and other threatened industrial action at London Heathrow, at €170 million ($186 million). It attributes the majority of this – some €137 million – to the strike by cockpit crews which were planned for 9, 10 and 27 September. BA initially cancelled over 4,500 flights but reinstated nearly 2,200. IAG adds that the carrier introduced "flexible" commercial policies, for refunds or rebooking, on another 4,070 flight not affected directly by the industrial action. "There have been no further talks between British Airways and [pilot union] BALPA," says IAG. The parent company has also warned that booking trends with its budget operators Vueling and Level are likely to have an adverse impact of €45 million. These combined elements have prompted IAG to review its full-year forecast. It expects its operating profit, before exceptionals, to be €215 million lower than the pro-forma figure of €3.48 billion achieved in the previous year. It had originally expected operating profit to be "in line" with the reported €3.23 billion for 2018 when it released its outlook at the beginning of this year. "Clearly any further industrial action will additionally impact IAG's full-year 2019 operating profit," adds the company.

Source: FlightGlobal

Thomas Cook Airlines' Scandinavian division has resumed flights, restoring services a day after the collapse of the main UK tour operator. The Scandinavian arm, based in Copenhagen, had initially been forced to ground its fleet – about a dozen Airbus A330s and A321s – after Thomas Cook Group filed for insolvency. But it says it received clearance 24h later and flights were restored on 24 September. The carrier operates on behalf of the Danish tour operator Spies, which states that it is "not part" of the Thomas Cook Group insolvency and is continuing as an independent company. Spies has been associated with Thomas Cook Group since 2007, and says the failure led to "serious consequences" including the necessity to conduct a "complete overview" of the company's operations – which forced the Scandinavian arm to "keep aircraft on the ground". "We are aware that [this suspension] created unrest and uncertainty," says Spies chief executive Jan Vendelbo. But he says that Spies and its sister companies, along with Thomas Cook Airlines Scandinavia, are healthy Nordic travel firms. "We are an independent and profitable entity, which is why we have already been able to secure our continued operations, with the support of our banks and creditors," he adds. Thomas Cook Airlines Scandinavia is operating several services on 25 September to destinations including resorts in the Mediterranean and the Canary Islands.

Source: FlightGlobal