The Chilean Court of Free Competition (Tribunal de Defensa de la Libre Competencia - TDLC) has conditionally approved the joint business agreement between LATAM Airlines Group, American Airlines (AA, Dallas/Fort Worth), and IAG International Airlines Group.
After more than two years since the case was launched, the TDLC ordered the three carriers to maintain the current combined capacity on the trunk routes from Santiago de Chile to each of Miami International and Madrid Barajas. The carriers will also have to increase the capacity on other Northern American and European services, enter into mandatory special prorate agreements (SPAs) with new entrants on the Santiago to Miami and Madrid routes, and extends its own frequent flyer benefits to other airlines' passengers on these two services.
The JBA will also be reviewed again after five years.
LATAM and American Airlines said that while they welcomed the decision in principle, they would now evaluate the conditions imposed and communicate once they made their decisions.
The partnership between the three airlines has already been approved by the relevant competition authorities in Brazil, Colombia, and Uruguay, leaving Chile as the last regulatory hurdle to clear.
According to the ch-aviation capacity module, LATAM Airlines and American Airlines are currently the only passenger airlines offering scheduled flights between Santiago and Miami. In the US, the Chilean carrier also flies to New York JFK and Los Angeles International, while American Airlines also connects Santiago with Dallas/Fort Worth. United Airlines and Delta Air Lines also fly to Chile, from Houston Intercontinental and Atlanta Hartsfield Jackson respectively.
The Spain-Chile market is only served by IAG subsidiary Iberia and LATAM. Both airlines only fly between Madrid and Santiago.
