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  • Joe Breitfeller

Delta and LATAM Trans-America Joint Venture Agreement Approved by Brazilian Authorities

Delta Air Lines announced on Friday that their Trans-American Joint Venture Agreement with LATAM Airlines Group S.A. has achieved regulatory approval from Brazil’s competition authority, the Administrative Council of Economic Defense (CADE).

LATAM Airlines Airbus A320neo Empennage - Courtesy Airbus

On Friday (September 18, 2020), Delta Airlines announced a major milestone for their Trans-America Joint Venture Agreement (JVA) with LATAM Airlines Group S.A., as the agreement has received regulatory approval in Brazil. The Administrative Council for Economic Defense (CADE), Brazil’s competition authority, approved the agreement on Thursday, September 17, 2020. The JVA between the carriers was presented to the CADE on July 14th and has now been approved without conditions. The CADE evaluated the agreement’s impact on free competition, taking into consideration the impact of the global pandemic on the airline industry. This is the first approval received by the JVA which was signed last May. The goal of the joint venture is to combine the strengths of the carriers’ complementary route networks in North and South America. In Friday’s announcement, Delta Air Lines’ CEO, Ed Bastian said,

“This marks an important step in the approval process for our joint venture with LATAM, which will provide customers with the best experience and partner network in the Americas. Just as Delta is committing significant resources to ensure customers feel confident when they travel, we remain equally committed to bringing customers all of the benefits our partnership with LATAM will offer.”

Also commenting on the JVA approval, LATAM Airlines Group’s CEO, Roberto Alvo added,

“While we remain focused on providing customers with the confidence to fly and are working towards the safe and responsible recovery of aviation in Latin America, we have not lost sight of our long-term commitments. The CADE’s approval in just two months is testament to the joint venture’s benefits for customers and for Brazil, marking another important step towards offering customers exceptional connectivity in the Americas. We are confident that these same benefits will be recognized by competition authorities in other countries.”

Delta and LATAM have achieved several milestones since the initial framework of their partnership was first announced in September 2019. Some enhancements in customer benefits include mutual frequent flyer mile earning and redemption, reciprocal elite benefits, codesharing on select routes, shared hub terminals and mutual access to 35 U.S. Delta Sky Club and five LATAM VIP lounges in South America.

Source: Delta Air Lines

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