Brazil’s Senate approved a proposal for an Open Skies agreement with the US, which opens the way for American Airlines and LATAM to begin a strategic alliance.
The two airlines had already received approval for a joint venture by the Brazilian regulator but the U.S. Department of Transportation said it would give the go-ahead only if an Open Skies accord is agreed.
"Open Skies agreements have proven to increase travel choices and enhance competition, resulting in greater benefits for consumers and positively impacting economic growth," American said in a statement.
Open Skies was supported by other Brazilian carriers too, such GOL and Avianca Brazil which have or are seeking closer ties with Delta Air Lines and United Airlines respectively.
Brazil’s tourism board Embratur predicts the agreement could spur an increase of about 30% in the number of direct routes linking the countries.
The Brazil government said the number of US nationals visiting Brazil has seen a dramatic uptick of 70% since January when Brazil rolled out an electronic visa system.
