Brazil's antitrust watchdog (Conselho Administrativo de Defesa Econômica - CADE) has approved unreservedly the proposed Joint Business Agreement (JBA) between LATAM Airlines Group and American Airlines (AA, Dallas/Fort Worth). The JBA has already been approved by regulators in Uruguay and Colombia.
"Through this agreement we’ll be able to offer customers a superior route network, with increased connectivity, lower fares and a seamless travel experience between our two airlines," said American's Chairman and CEO Doug Parker in a press statement. "We look forward to implementing our joint business with LATAM, and bringing more and better services for our mutual customers traveling between the U.S. and Brazil."
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.
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 an application filed with the US Department of Transportation (DOT) in May 2016.
