Tag: SkyMiles

Delta and LATAM Receive Final Approval in Brazil for Joint Venture Agreement

February 25, 2021 / WIL BALDWIN

Delta Air Lines (NYSE: DAL) and LATAM (Santiago: LTM.SN) have received final approval, without conditions, of their commercial agreement (“trans-American Joint Venture agreement” or “JVA”) by the Brazilian competition authority – the Administrative Council for Economic Defense – after initial approval was granted in September 2020. The JVA seeks to enhance the route networks served by both airlines, delivering a seamless travel experience between North and South America. The Delta-LATAM agreement has also been approved in Uruguay while the application process continues in other countries, including Chile.

“This final approval in Brazil furthers our mission to provide customers in this important market with the world-class travel experience and options they deserve,” said Delta CEO Ed Bastian. “Moving forward, we will continue working with LATAM to unlock more benefits for our customers and create the premier airline alliance of the Americas.”

LATAM Airlines Group CEO Roberto Alvo added, “This ruling reinforces the benefits of this type of agreement for travelers and enables us to advance in our commitment to delivering greater and better connectivity between South America and the world.”

The ratification by the Brazilian authority supports the work of both airlines to deliver a broader and more competitive network of benefits for their customers that will include, among others:

Code-share agreements between Delta and certain subsidiaries of the LATAM group, which allow the purchase of tickets to a larger network of destinations.
Members of the Delta SkyMiles and LATAM Pass programs can redeem points / miles on both airlines, accessing more than 435 destinations around the world.
Shared terminals and faster connections at Terminal 4 of New York’s John F. Kennedy International Airport (JFK) and at Terminal 3 of São Paulo’s Guarulhos Airport.
Reciprocal lounge access: Customers can access 35 Delta Sky Club lounges in the United States and five LATAM VIP lounges in South America.

Delta Launches $6.5 Billion Debt Deal Backed by Frequent Flyer Program

September 14, 2020 / WIL BALDWIN

CHICAGO, Sept 14 (Reuters) – Delta Air Lines said on Monday it is seeking to raise $6.5 billion through new bonds and loans backed by its SkyMiles loyalty program, further bolstering liquidity to weather a drastic downturn in travel demand due to the COVID-19 pandemic.

The airline said it would use the loyalty program as collateral to secure the new loans and issuance, as it continues to burn through about $27 million in cash each day.

U.S. airlines have cut costs and raised debt to survive what they call an unprecedented industry crisis. The situation is not expected to improve until there is a meaningful recovery in demand.

With its latest financing deal, Delta will not pursue a $4.6 billion federal loan available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, officials said, even as it continues to lobby for a second round of federal payroll grants.

Atlanta-based Delta is among U.S. airlines to have tapped funds under a $25 billion made available primarily in grants under the CARES Act to cover employees’ payroll through September, but not a separate $25 billion package in secured loans.

The loan program has attractive financing terms but restricts executive compensation and share buybacks.

The airline has said it could furlough nearly 2,000 pilots in October without more federal aid, but believes it can avoid any flight attendant furloughs through the winter thanks to strong demand for voluntary departures or leaves.

Delta had $15.7 billion in liquidity at the end of June, which it said equaled about 19 months of financial runway at a daily burn rate of $27 million.

It still has unencumbered assets worth $6 billion to $7 billion, primarily in the form of spare aircraft parts and engines, if needed, officials said.

Delta did not disclose the value of the loyalty program or the terms of the new financing, which mirrors a debt deal by United Airlines in June backed by its $20 billion MileagePlus program.

Delta’s shares, which have lost about 46% this year, closed at $31.70 on Friday.

(Reporting by Tracy Rucinski; Editing by Ana Nicolaci da Costa)

Delta Extends Medallion Status, Club Memberships, and More for SkyMiles Members

April 6, 2020 / WIL BALDWIN

Medallion Members will be able to enjoy their current Status through 2021
Other program and card benefits will be extended between six months and one year

Delta SkyMiles Medallion Members will enjoy the same loyalty benefits throughout 2021 as they have in 2020. The 12-month Status extension is part of Delta’s work to offer greater flexibility as coronavirus impacts travel plans, so customers can rest assured their Status will be there when they’re ready to fly.

“On behalf of all of us at Delta, I want to thank our customers for your continued loyalty during these unprecedented times. While our focus is on keeping customers and employees safe and healthy today and always, you are a part of the Delta family and we know how important these benefits are to you,” said Sandeep Dube, Delta’s Senior Vice President – Customer Engagement and Loyalty, and CEO of Delta Vacations. “That’s why as coronavirus continues to dramatically impact travel across the globe, you don’t have to worry about your benefits – they’ll be extended so you can enjoy them when you are ready to travel again.”

The following updates will happen automatically over the coming weeks, with no action needed from customers.

Medallion Members:
- All Medallion Status for 2020 will be automatically extended for the 2021 Medallion Year.
- All Medallion Qualification Miles (MQMs) from 2020 are being rolled over to 2021 to qualify for 2022 Medallion Status.
Delta Sky Club Individual and Executive memberships with an expiration of March 1, 2020, or later will receive six additional months of Delta Sky Club access beyond their expiration date.
Delta SkyMiles American Express Card Members:
- If you have one of the following in your SkyMiles profile “My Wallet” that is valid now or has expired since March 1, 2020, we are extending the expiration dates to give you additional time to enjoy your benefits:
  - Delta SkyMiles Gold Card Members with a $100 Delta flight credit will get a six-month extension beyond their current expiration date.
  - Delta SkyMiles Platinum Card Members with Companion Certificates with an original expiration date between March 1 and June 30, 2020, can use them when they book and fly by Dec. 31, 2020, and those that expire between July 1, 2020, and April 1, 2021, will receive an additional six months beyond the current expiration date.
  - Delta SkyMiles Reserve Card Members with Companion Certificates with an original expiration date between March 1 and June 30, 2020, can use them when they book and fly by Dec. 31, 2020, and those that expire between July 1, 2020, and April 1, 2021, will receive an additional six months beyond the current expiration date.
  - Delta SkyMiles Reserve Card Members will also get a six-month extension to use their Delta Sky Club One-Time Guest Passes beyond their current expiration date.
SkyMiles Members:
- If you have one of the following in your SkyMiles profile “My Wallet” that is valid now or has expired since March 1, 2020, we are extending the expiration dates to give you additional time to enjoy your benefits:
  - Upgrade Certificates or $200 Travel Vouchers with an original expiration date between March 1 and June 30, 2020, are extended – now, they can be booked and flown by Dec. 31, 2020. And, SkyMiles Members with Upgrade Certificates or $200 Travel Vouchers that expire after June 30, 2020, will receive an additional six months beyond the current expiration date.
  - SkyMiles Select members will receive a six-month extension to the Priority Boarding benefit and any unused drink vouchers.

“We are continuously monitoring how coronavirus impacts travel and will make additional adjustments to support our customers’ needs as the pandemic evolves,” said Dube.

SkyMiles Members enrolled in a challenge or promotion to earn Medallion Status, such as the Status Match Challenge, Reclaim My Status or a promotion offered through their employer, can restart that promotion when they are ready to travel again. Those Members will receive next steps from Delta in the coming weeks.

Even more details can be found on Delta.com.

Delta and LATAM Receive Final Approval in Brazil for Joint Venture Agreement

Delta Launches $6.5 Billion Debt Deal Backed by Frequent Flyer Program

Delta Extends Medallion Status, Club Memberships, and More for SkyMiles Members

Archives