Despite LATAM’s ongoing bankruptcy restructuring, its proposed joint venture with Delta Air Lines has received approval from Brazil’s competition regulator.
Brazil’s Administrative Council for Economic Defense approved the partnership without conditions.
It is the first of many steps the JV needs to pass, with further approvals required from regulators in Chile, Colombia, Ecuador, Paraguay and the US.
Only then will the JV be able to proceed.
"The approval is testament to the joint venture’s benefits for customers and for Brazil, marking another important step towards offering customers connectivity in the Americas," said LATAM Airlines Group CEO, Roberto Alvo.
"We are confident that these same benefits will be recognized by competition authorities in other countries."
The partnership has already provided the benefits of codesharing on select routes and reciprocal loyalty accrual and redemption.
The joint venture will eventually allow the airlines to work closely together to align schedules between North and South America and cooperate on marketing and other operational functions.
Written by Ray Montgomery, US editor
