Publications
Publications
- May 2025
- HBS Case Collection
From oneworld to a New World? LATAM’s High-Stakes Alliance Dilemma
By: Juan Alcacer and Valentina Tarzijan
Abstract
As global alliances evolve and regulatory barriers mount, LATAM Airlines must reassess the strategic logic of partnerships. In 2019, Delta Air Lines proposed a $1.9 billion investment and deeper cooperation via a Joint Business Agreement, prompting LATAM to evaluate exiting oneworld and its long-standing collaboration with American Airlines. The case examines the strategic, operational, and regulatory complexities of alliance switching in the airline industry. Students explore trade-offs between governance models (joint ventures vs. alliances), alliance membership vs. independence, and the risks and benefits of minority equity partnerships. The case provides an in-depth setting to apply competitive strategy, partner selection, and global integration frameworks.
Keywords
Citation
Alcacer, Juan, and Valentina Tarzijan. "From oneworld to a New World? LATAM’s High-Stakes Alliance Dilemma." Harvard Business School Teaching Note 725-454, May 2025.