Colombia's civil aviation agency (Aerocivil) has unconditionally approved a Joint Business Agreement (JBA) between American Airlines (AA, Dallas/Fort Worth) and LATAM Airlines Colombia (4C, Bogotá), reports Diario Financiero. The approval comes just a few weeks after Aerocivil approved a joint venture between LATAM Airlines Colombia and IAG International Airlines Group.
The "metal neutral" agreement is intended to improve connectivity between the United States and Canada on the one hand, and Brazil, Chile, Colombia, Paraguay, Peru and Uruguay on the other, by eliminating inefficiencies and protectionist measures, and reducing air fares. The JBA particularly highlights that reliability will be improved, as it will counteract poor economic conditions in South America which causes frequent cancellations.
"We are very satisfied with the new Aerocivil resolution in Colombia, as it has been able to see in both instances – first approving the JBA with IAG and now the JBA with American Airlines – the benefits of these agreements," said LATAM CEO Enrique Cueto in a statement.
Should the JBA clear the remainder of its regulatory hurdles, it will represent the first "broadly immunized joint business operating between North and South America," according to the application filed with the US Department of Transportation (DOT) in May 2016.
A subsidiary of LATAM Airlines (LA, Santiago de Chile), LATAM Colombia has a fleet of eleven A320-200s and seven A319-100s used on scheduled passenger flights throughout Colombia as well as to Aruba, Mexico, Peru, and the United States.
