Who Really Owns LATAM Airlines? Unpacking the Global Ownership Puzzle

LATAM Airlines, one of the largest airline groups in Latin America, isn’t owned by a single country. Instead, it operates under a complex ownership structure, reflecting its international reach and history of mergers and acquisitions. The airline’s ownership is distributed among various shareholders, including individuals, investment funds, and other airlines, primarily based in Chile and the United States. Its headquarters are located in Santiago, Chile, further solidifying the nation’s significant stake in the company.

Deciphering the Ownership Structure

Understanding LATAM’s ownership requires diving into its corporate history. Formed through the merger of LAN Airlines (Chile) and TAM Airlines (Brazil) in 2012, LATAM inherited a diverse shareholder base. Let’s break down the key components:

Major Shareholders

While precise ownership percentages fluctuate over time due to trading and corporate actions, here’s a general overview of prominent shareholders:

• The Cueto Family (Chile): The Cueto family, instrumental in the growth of LAN Airlines, remains a significant shareholder. Their involvement represents a strong Chilean influence.
• Delta Air Lines (United States): In 2019, Delta Air Lines acquired a 20% stake in LATAM, injecting significant capital and forging a strategic partnership. This move marked a pivotal moment in LATAM’s trajectory and highlighted the growing importance of transatlantic alliances.
• Qatar Airways (Qatar): Prior to Delta’s investment, Qatar Airways held a 10% stake in LATAM. While its current holding may have shifted, Qatar Airways’ initial investment signaled international interest in the Latin American aviation market.
• Various Institutional Investors: Numerous investment funds, pension funds, and other institutional investors hold shares in LATAM. These entities are typically based in various countries, including the United States and Europe.

The Impact of Bankruptcy Proceedings

LATAM Airlines filed for Chapter 11 bankruptcy protection in the United States in 2020, largely due to the devastating impact of the COVID-19 pandemic on the airline industry. This process led to a restructuring of the company’s debt and equity, potentially altering the ownership landscape. The restructuring plan, approved in 2022, involved a significant infusion of capital from Delta Air Lines and other investors, diluting the ownership stakes of some existing shareholders.

The Importance of Understanding “Control” vs. “Ownership”

It’s crucial to distinguish between outright ownership and effective control. While Delta Air Lines holds a substantial stake, it doesn’t necessarily dictate all aspects of LATAM’s operations. Board representation, voting rights, and contractual agreements determine the level of influence different shareholders exert. The Cueto family, despite potentially owning a smaller percentage than Delta, may still retain significant influence through their long-standing history with the company and their representation on the board.

Frequently Asked Questions (FAQs) about LATAM Airlines Ownership

To further clarify the complexities of LATAM Airlines’ ownership, let’s address some frequently asked questions:

1. Is LATAM Airlines a Chilean Company? While headquartered in Santiago, Chile, and with a strong historical connection to the country, LATAM is not solely a Chilean company. Its ownership is international, with significant investments from the United States, Qatar (historically), and other global investors.

2. How did the merger between LAN and TAM affect ownership? The merger created a more diverse shareholder base. LAN shareholders received shares in the newly formed LATAM Airlines Group, effectively integrating the ownership of both airlines.

3. What role did Delta Air Lines play in LATAM’s ownership structure? Delta Air Lines’ $1.9 billion investment in 2019 gave it a significant 20% stake and a seat on LATAM’s board of directors. This partnership has allowed LATAM to expand its network and improve its services.

4. How did the Chapter 11 bankruptcy affect LATAM’s ownership? The bankruptcy proceedings led to a restructuring of LATAM’s debt and equity. New investors, including Delta Air Lines, injected fresh capital, diluting the ownership stakes of some pre-bankruptcy shareholders.

5. Who is the CEO of LATAM Airlines, and what is their nationality? The current CEO of LATAM Airlines Group is Roberto Alvo, a Chilean national. His leadership reflects the continued importance of Chilean expertise within the company.

6. Does the Chilean government own any shares in LATAM Airlines? The Chilean government does not directly own shares in LATAM Airlines. However, pension funds in Chile, which manage public funds, may hold shares in the company.

7. Is LATAM Airlines a member of any airline alliances? LATAM Airlines was previously a member of the oneworld alliance. However, as a consequence of the partnership with Delta Airlines, which is a founding member of the SkyTeam alliance, LATAM left oneworld in 2020.

8. What are the implications of the Delta Air Lines partnership for LATAM’s customers? The partnership allows for enhanced connectivity between North and South America, codesharing agreements, and improved customer service, including reciprocal frequent flyer benefits.

9. Where does LATAM Airlines operate flights? LATAM Airlines operates flights throughout Latin America, North America, Europe, and Oceania. It is one of the most extensive airline networks in South America.

10. How can I find the most up-to-date information on LATAM’s ownership structure? Information about LATAM’s ownership is typically available in the company’s annual reports and securities filings. These documents can be found on LATAM’s investor relations website or through regulatory agencies like the Securities and Exchange Commission (SEC) in the United States.

11. What are some of the challenges LATAM Airlines faces in the current market? LATAM Airlines faces ongoing challenges, including fluctuating fuel prices, economic instability in Latin America, and increased competition from low-cost carriers.

12. Will the ownership of LATAM Airlines change in the future? Ownership structures are always subject to change based on market conditions, strategic decisions, and investment opportunities. Further acquisitions, divestitures, or equity offerings could potentially alter LATAM’s ownership landscape in the future.

In conclusion, the ownership of LATAM Airlines is a dynamic and multifaceted issue. While headquartered in Chile and retaining a strong Chilean influence, it is ultimately an international company with shareholders from around the world. The investment from Delta Air Lines has reshaped its ownership and strategic direction, and the bankruptcy restructuring further altered the equity landscape. To gain a complete picture of LATAM’s ownership, it is essential to consider the complex interplay of major shareholders, corporate history, and ongoing market forces. Staying informed about LATAM’s filings and announcements is key to understanding how this aviation giant continues to evolve.