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Delta Air Lines and LATAM Airlines Group have received regulatory approval for their trans-American joint venture from Brazil’s competition authority, the Administrative Council for Economic Defense (CADE).
The proposed deal between Delta and LATAM, which was presented to the CADE on July 14th, was approved without conditions.
CADE carried out an evaluation of the competition environment and examined the unprecedented economic impact of COVID-19 on the airline industry.
This is the first approval for the joint venture between Delta and LATAM since it was signed in May.
“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,” said Delta chief executive, Ed Bastian.
“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.”
The joint venture aims to connect the carriers’ “highly complementary” route networks and provide customers with a seamless travel experience between North and South America, once all regulatory approvals are secured.
“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,” said LATAM Airlines Group chief executive, Roberto Alvo.
“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 recognised by competition authorities in other countries.”
Delta Air Lines took a near $US2 billion stake in LATAM last year ahead of the deal.
Source: breakingtravelnews.com