LATAM, the South American carrier, has signed a codeshare agreement with Malaysia Airlines. The two carriers are currently both members of the oneworld alliance, however, LATAM is set to leave later this year.

2020 has seen an interesting start for the oneworld alliance. We've been given notice of when Royal Air Maroc will join it (April Fools Day). This was alongside details of when LATAM would exit the alliance following its acquisition by Delta. Then we saw that Alaska Airlines was eyeing entry into the alliance. However, as a result of LATAM's departure, it has been looking to form lasting bonds with some of the remaining alliance members.

The Malaysia Airlines codeshare

Earlier today, a new codeshare agreement was put in place between Malaysia Airlines and LATAM. This will see the South American carrier selling tickets on select MAS flights from Kuala Lumpur. However, the codeshare works both ways round.

Malaysia Airlines will be able to sell tickets on a couple of LATAM routes from Australia and New Zealand. One of these routes is actually a fifth freedom route operated by LATAM between Australia and New Zealand.

Malaysia
Malaysian Airlines is suffering under the new FAA rules. Photo: Getty Images

According to Flight Global and Cirium, the following routes operated by LATAM are included in the codeshare agreement:

  • Auckland to Santiago;
  • Auckland to Sydney;
  • Melbourne to Santiago.

Meanwhile, as far as Malaysia Airlines operated flights go, another three routes are included. These are:

  • Auckland to Kuala Lumpur;
  • Melbourne to Kuala Lumpur;
  • Sydney to Kuala Lumpur.

LATAM leaving oneworld

Today's new codeshare announcement comes as LATAM formalizes leaving the oneworld alliance. The South American airline already cut its codeshare ties with American Airlines. This was as American's competitor, Delta, became a key investor in LATAM.

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LATAM's CEO made a similarly worrying prediction. Photo: LATAM

LATAM's departure from the oneworld alliance will be effective from the 1st of May 2020. From this day, the airline will cease to be a member of the alliance, and certain benefits stop. For example, there won't automatically be a reciprocal agreement in place for members with regards to frequent flyer benefits.

The whole situation can almost be thought of as an airline edition of Brexit, albeit with fewer global ramifications. The codeshare agreement with Malaysia Airlines comes as LATAM tries to define its future relationships with each airline.

LATAM had been discussing a joint business agreement with British Airways owner IAG. However, the airline told Simple Flying in December:

“IAG and LATAM Airlines have decided that they will not implement the announced joint business agreement or JBA [joint business agreement].”

What do you make of the latest agreement between Malaysia Airlines and LATAM. Let us know your thoughts in the contents.