LATAM Airlines Group has secured the approval of Brazilian regulators over its proposed tie-up with American Airlines (AA, Dallas/Fort Worth). In a statement, LATAM confirmed that its joint business agreement (JBA) with the American Airlines Group has been approved without restriction by Brazil's CADE (Administrative Council for Economic Defence).
The JBA between the two groups has been making the rounds of the various South American countries in which LATAM has subsidiaries, and has so far been approved – alongside a similar deal with IAG International Airlines Group – in Uruguay and Colombia. Chile's National Economic Prosecutor's Office (FNE) has been more wary of the deal, and it must also still clear regulatory hurdles in Argentina, Bolivia, Ecuador, Paraguay and Peru.
The "metal neutral" agreement is intended to improve connectivity between North and South America, by eliminating inefficiencies and protectionist measures, and reducing air fares.
"We welcome this news and the resolution marks the culmination of a process that is key for the connectivity of Brazil, first with the approval of the JBA between LATAM and IAG and now with the JBA with American Airlines," said Enrique Cueto, CEO of LATAM Airlines Group, in a statement. "With the JBA we will continue to develop tourism and business travel, increasing the number of North American passengers travelling to the many destinations that Brazil has to offer."
The CADE approval covers both passenger and cargo operations.
