• The decision follows the CADE´s approval of the JBA between LATAM and IAG in March this year

  • With this agreement, Brazilian passengers will have access to lower fares, improved connection times and new routes for travelling between Brazil and the United States

  • LATAM's JBAs with both IAG and American Airlines have now been approved in Uruguay, Colombia and Brazil

Brasilia, Brazil, 14 September 2017 – The General Superintendence of the CADE (Administrative Council for Economic Defense) in Brazil today recommended the approval without restriction of the Joint Business Agreement (JBA) between LATAM Airlines Group and American Airlines for both their passenger and cargo businesses.

With this resolution, the CADE has reconfirmed its positive view of the JBAs proposed by LATAM, which was first demonstrated by its approval of the JBA between LATAM and IAG in March 2017.

"This is excellent news for Brazilian passengers, who will be the principal beneficiaries of the JBA with access to lower prices, improved connection times and new routes when travelling between Brazil and the United States. The approval demonstrates that these agreements are a necessary step to ensure Latin America's connectivity with other regions of the world and that free competition authorities recognize the benefits that they deliver in the development of tourism," said Enrique Cueto, CEO of LATAM Airlines Group.

"We welcome this news and the resolution marks the culmination of a process that is key for the connectivity of Brazil, first with the approval of the JBA between LATAM and IAG and now with the JBA with American Airlines. These types of agreements deliver benefits that have been demonstrated in global aviation and are now a trend that is here to stay in the region. With the JBA we will continue to develop tourism and business travel, increasing the number of North American passengers travelling to the many destinations that Brazil has to offer," added Cueto.

LATAM's JBAs with both American Airlines and IAG have now been approved in Uruguay, Colombia and Brazil. LATAM is confident that – like the CADE – free competition authorities in other jurisdictions will evaluate and consider the substantial benefits that these agreements offer to passengers. In addition, it reiterates that JBAs are part of the development of aviation to improve the quality of services and deliver lower fares, which in turn help to promote tourism in the region.

As part of the process, over the next 15 days the Administrative Tribunal for Economic Defense of the CADE could request to review the resolution. LATAM continues to actively collaborate with relevant authorities and provide any information necessary.

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