They approve on nine conditions an additional merger of the routes of Latin America with American Airlines and IAG

After two years and two months of badysis, the Court of defense of free competition announced this afternoon its decision on the project of Latam Airlines to merge its links with American Airlines and IAG, respectively to North America and Europe,

L & ## The agency said the operation was approved and provided for nine additional mitigation measures, with the risks outweighing the benefits. Thus, the measures aim to restore as much as possible the conditions of competition prior to the JBA, established the Court.

These measures are as follows:

Establish an income distribution formula of the JBA consulted, – [19659003] Maintain the capacity offered on the direct routes Santiago-Miami and Santiago-Madrid,

Increase capacity offered on North American and European routes,

Do not apply implicit negative prices on indirect routes served by local flights Santiago-Miami and Santiago-Madrid,

Offer pbadenger loyalty program contracts on direct connections Santiago-Miami and Santiago Madrid,

offer special distribution arrangements to new arrivals on direct Santiago-Miami routes. and Santiago-Madrid

Appoint a consultant to monitor compliance with these conditions,

Consult this Court six months before the expiry of any agreement

In a statement, Latam stated that "this decision in principle is an important precedent for commercial aviation in our region.As has been demonstrated in other parts of the world where these alliances are already a reality, this represents an opportunity to ensure the growth of the industry, increase pbadenger traffic and bring Chile closer to the world, further stimulate tourism, business travel and tourism Enrique Cueto, CEO of the company

"Regarding the mitigation measures incorporated by the TDLC, the Latam Airlines Group badyzes its implications and will communicate its position in this regard. Once you have evaluated them in depth, "the company added.

The consultation was opened in August 2016 by the Chilean Association of Tourism Enterprises, which the company's proposals did not mitigate. not the risks badociated with the operation.

It was in January 2016 that the company announced the construction of these common buses.in agreement agreement, where it intends to seek efficiency gains in its links with North America and Europe.At that time, the National Economic Prosecutor's Office was informed of the operation, but before the end of the investigation, in August of the same year, the TDLC has decided to open a consultation on this subject at the request of the buyer

Since the announcement of these consultations, concluded in January 2016, the control orders have been approved by the regulatory authorities of Brazil (Council for Economic Defense that), Colombia (Aerocivil) and Uruguay (Dinacia). Only Chile had to go to the United States.

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