Published on : Wednesday, January 20, 2016
American Airlines and LATAM Airlines Group are applying for regulatory approval to enter into a joint business (JB) to better serve their customers. The JB, which is subject to securing regulatory approvals, will offer American and LATAM customers an expanded network with coordinated schedules providing seamless travel on the airlines’ flights between the United States and Canada and six South American countries – Brazil, Chile, Colombia, Paraguay, Peru and Uruguay.
If approved, the JB will enhance the existing strategic partnership between American and LATAM allowing closer commercial cooperation that will provide significant benefits for consumers. They include:
Expanded network offerings, with access to more routes, frequencies and destinations
More competitive fares
Increased choices for customers
The airlines plan to file for antitrust immunity from the U.S. Department of Transportation and appropriate local authorities in South America. LATAM and American launched their first codeshare in 1999 and became oneworld partners when LAN Chile joined the alliance in 2000.
“When great airlines can work together, customers win with more choices for when and how they travel,” said Doug Parker, chairman and CEO of American Airlines. “Customers will gain seamless access to more frequent and convenient schedule options than either carrier could offer individually. In the eight countries covered by this new joint business agreement, customers will have access to nearly 330 destinations, including 100 more South American destinations than American’s network serves today.”
Enrique Cueto, CEO of LATAM Airlines Group added, “We’re bringing the United States, Canada and South America closer together than ever before, by providing both American and LATAM customers even greater benefits. This is a positive step in offering them the best connecting network in North and South America and it increases the possibility of adding new destinations to our networks in the future.”
Through the proposed joint business, American will provide LATAM customers greater access to cities in the U.S. and Canada via American’s key hubs in Miami, New York, Dallas/Fort Worth and Los Angeles. LATAM’s hubs in Sao Paulo, Santiago, Brasilia, Lima and Bogota will give American customers enhanced network connectivity to cities in South America. In addition, it is anticipated that if approved, this JB will create opportunities for new direct service to currently underserved destinations and additional frequencies on existing routes.