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Home  >  LATAM • Law In Travel • News  >  Supreme Court Blocks LATAM Marriage With British Airways And American Airlines
LATAMLaw In TravelNews

Supreme Court Blocks LATAM Marriage With British Airways And American Airlines

Matthew Klint Posted onMay 28, 2019 1 Comment

There’s no plural marriage in Chile, where the Supreme Court blocked proposed unions between LATAM and both American Airlines and British Airways.

Joint-venture agreements between LATAM and AA and BA have been three years in the making. The proposed AA joint venture (JV) would have covered routes to:

  • Brazil
  • Chile
  • Colombia
  • Paraguay
  • Peru
  • Uruguay

Meanwhile, a separate JV relationship with British Airways would have covered more routes to more countries, including:

  • Argentina
  • Bolivia
  • Brazil
  • Chile
  • Colombia
  • Ecuador
  • Paraguay
  • Peru
  • Uruguay

Chile is now off the list. In a surprise ruling, the Chilean Supreme Court cited competition concerns as the reason for blocking the JV relationship. The court held:

We are in the presence of an agreement between competitors … who individually each have relevant market shares and who would acquire a joint market power that would be hard to challenge in a post-deal scenario.

LATAM officials were “surprised” and called the ruling a “setback” for LATAM and the nation. Consumer rights groups and a Chilean tourism association had sued to block the JV relationship.

Chile may be out, but the other nations are in. The JV relationships have already been approved in Brazil, Colombia, and Uruguay.

In a statement, American Airlines said:

We believe our joint business would have brought tremendous benefits to Chile, as we expect it will in Brazil, Colombia, and other South American countries that have already approved the agreement without conditions.

CONCLUSION

This was the Supreme Court of Chile, so there is no appeal for LATAM. Will consumers be helped or hurt because of the decision? It’s too early to tell, though likely helped by indeed maintaining more competition. That doesn’t mean it should have been blocked, though, especially after Chile’s anti-trust tribunal had approved the JV relationships.

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About Author

Matthew Klint

Matthew is an avid traveler who calls Los Angeles home. Each year he travels more than 200,000 miles by air and has visited more than 135 countries. Working both in the aviation industry and as a travel consultant, Matthew has been featured in major media outlets around the world and uses his Live and Let's Fly blog to share the latest news in the airline industry, commentary on frequent flyer programs, and detailed reports of his worldwide travel.

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