Delta’s investment in Gol has SkyTeam and broader US-LatAm strategic implications

SkyTeam's goal of recruiting Gol as a new member took one gigantic step forward this week with Delta Air Line's acquisition of a minority stake in the Brazilian carrier. The deal also further separates Delta from its US peers as the airline continues to aggressively pursue a strategy of investing in carriers from Latin America and potentially other overseas markets. Other US major carriers have not yet duplicated this strategy but should be enticed to follow Delta's lead given the opportunities which exist outside the mature US market.

Delta's eagerness to invest outside North America first surfaced in late 2009, when it made an ultimately unsuccessful bid to acquire a stake in Japan Airlines while the oneworld carrier was restructuring under bankruptcy protection. Nearly two years later, in Aug-2011, Delta made a lower profile but equally significant move in agreeing to acquire a minority stake in fellow SkyTeam member Aeromexico. The USD65 million deal with Aeromexico will give Delta about a 4% share in its Mexican partner as well as a seat on Aeromexico's board.