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Indiaexportnews.com

American Airlines and LATAM link up to file for JV antitrust immunity

  01.06.2016    

The cargo operations of American Airlines and LATAM could soon be integrated into the airlines' "metal neutral" alliance, which allows both carriers to book passengers, and potentially freight on the same route and share the revenues regardless of the operator for each flight.
Under the terms submitted on May 16 to the US Department of Transportation by the two airlines, the carriers would use each other's fleets and facilities to move freight along select routes, New York's Air Cargo World reported.
This development sets in motion, "the first broadly immunised joint business operating between North and South America". Once enacted, the two airlines anticipate a reduction in fares of up to 28 per cent on connecting itineraries, according to documents submitted in the filing.
Similar joint ventures have allowed carriers like All Nippon Airways (ANA) and Lufthansa to move cargo on a larger and faster network, thanks to more direct flights, destinations and frequencies.
American Airlines and LATAM are not the only airlines filing for antitrust immunity on routes connecting through the US.
On May 9, United filed with the USDOT to code-share with Singapore Airlines (SIA) between Singapore and eight locations in the US, starting July 2016, according to the CAPA Centre for Aviation.
Ultimately, the two airlines are seeking blanket approval on all United routes beyond SIA's US gateways and vice versa.



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