The FNE seeks to prevent LATAM alliances with 3 airlines



[ad_1]

The Office of the National Economic Prosecutor (FNE) filed an appeal with the Court for the Defense of Free Competition (TDLC) an appeal seeking to the Supreme Court to annul the resolution the same court pronounced on October 31 last and in which he approved, with conditions, the alliances planned by the national airline Latam with the British British Airways and the Spaniards Iberia – owned by the same owner – and with the American company American Airlines .

In the appeal, the FNE asked the highest court of the country "to revoke the resolution and to prohibit the call for the realization of the common commercial agreements consulted, which are contrary to rules governing free competition ".

Indeed, according to the institution, this operation corresponds to an agreement between petidores, so that its realization means that the parties coordinate "schedules, tariffs, sales strategies and capacities, integration frequent transportation programs and the distribution of income between the parties involved in the routes ".

"The parties would leave behaving as independent economic agents on the routes where the JBAs have effects, with consequences equivalent to those of a merger, but without the gains of the parties. efficiency and savings that one could expect from a merger, "he said.

The FNE also questions the TDLC on the approval of the alliance despite the risks they would imply and accused it of having chosen to approve the alliances by imposing mitigation measures that would have " with the essential aim of restoring as much as possible conditions of competition prior to the materialization of the JBAs consulted. "

Finally, the FNE badured the imposed by the TDLC are ineffective, insufficient, subject to interpretation, difficult to control and may even distort the affected markets.



[ad_2]
Source link