American-LATAM JV moves closer to approval in Brazil

The general superintendence of Brazilian regulatory agency Conselho Administrativo de Defesa Econômica (CADE) has recommended that CADE’s administrative tribunal approve the American Airlines-LATAM Airlines Group joint venture (JV) without conditions.

The proposed antitrust-immunized American-LATAM JV has already gained approval from regulatory authorities in Uruguay and Colombia. It still needs US Department of Transportation (DOT) approval. CADE’s administrative tribunal has until Sept. 29 to decide whether further review in Brazil is needed.

American chairman and CEO Doug Parker called the initial approval in Brazil an “important step,” adding, “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.”

Santiago de Chile-based LATAM and Dallas/Fort Worth-based American are both oneworld members. LATAM is also seeking approval for a similar JV with International Airlines Group (IAG), parent of oneworld members British Airways and Iberia.