American Airlines and LATAM Airlines Group Announce Plans for a Joint Business
January 14 2016 - 4:00PM
American Airlines (NASDAQ:AAL) and LATAM Airlines Group are
applying for regulatory approval to enter into a joint business
(JB) to better serve their customers. The JB, which is subject to
securing regulatory approvals, will offer American and LATAM
customers an expanded network with coordinated schedules providing
seamless travel on the airlines’ flights between the United States
and Canada and six South American countries – Brazil, Chile,
Colombia, Paraguay, Peru and Uruguay.
If approved, the JB will enhance the existing strategic
partnership between American and LATAM allowing closer commercial
cooperation that will provide significant benefits for consumers.
These include:
- Expanded network offerings, with access to more routes,
frequencies and destinations
- More competitive fares
- Increased choices for customers
- Seamless connectivity
The
airlines plan to file for antitrust immunity from the U.S.
Department of Transportation and appropriate local authorities in
South America. LATAM and American launched their first codeshare in
1999 and became oneworld partners when LAN Chile joined the
alliance in 2000.
“When great airlines can work together, customers win with more
choices for when and how they travel,” said Doug Parker, chairman
and CEO of American Airlines. “Customers will gain seamless access
to more frequent and convenient schedule options than either
carrier could offer individually. In the eight countries covered by
this new joint business agreement, customers will have access to
nearly 330 destinations, including 100 more South American
destinations than American’s network serves today.”
Enrique Cueto, CEO of LATAM Airlines Group added, “We’re
bringing the United States, Canada and South America closer
together than ever before, by providing both American and LATAM
customers even greater benefits. This is a positive step in
offering them the best connecting network in North and South
America and it increases the possibility of adding new destinations
to our networks in the future.”
Through the proposed joint business, American will provide LATAM
customers greater access to cities in the U.S. and Canada via
American’s key hubs in Miami, New York, Dallas/Fort Worth and Los
Angeles. LATAM’s hubs in Sao Paulo, Santiago, Brasilia, Lima and
Bogota will give American customers enhanced network connectivity
to cities in South America. In addition, it is anticipated that if
approved, this JB will create opportunities for new direct service
to currently underserved destinations and additional frequencies on
existing routes.
About American Airlines GroupAmerican Airlines
and American Eagle offer an average of nearly 6,700 flights per day
to nearly 350 destinations in more than 50 countries. American has
hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami,
New York, Philadelphia, Phoenix, and Washington, D.C. American is a
founding member of the oneworld alliance,
whose members and members-elect serve nearly 1,000 destinations
with 14,250 daily flights to 150 countries. Shares of American
Airlines Group Inc. trade on Nasdaq under the ticker symbol
AAL. In 2015, its stock joined the S&P 500 index. Connect
with American on Twitter @AmericanAir and at
Facebook.com/AmericanAirlines.
About LATAM Airlines Group S.A.LATAM Airlines
Group S.A. is the new name given to LAN Airlines S.A. as a result
of its association with TAM S.A. LATAM Airlines Group S.A. now
includes LAN Airlines and its affiliates in Peru, Argentina,
Colombia and Ecuador, and LAN Cargo and its affiliates, as well as
TAM S.A. and its subsidiaries TAM Linhas Aereas S.A., including its
business units TAM Transportes Aereos del Mercosur S.A., (TAM
Airlines (Paraguay)) and Multiplus S.A. This association creates
one of the largest airline groups in the world in terms of network
connections, providing passenger transport services to about 140
destinations in 24 countries and cargo services to about 144
destinations in 26 countries, with a fleet of 318 aircraft. In
total, LATAM Airlines Group S.A. has approximately 53,000 employees
and its shares are traded in Santiago, as well as on the New York
Stock Exchange, in the form of ADRs, and Sao Paulo Stock Exchange,
in the form of BDRs.
LATAM Airlines Group announced that LATAM is the new brand for
LAN Airlines, TAM Airlines and Affiliates. LATAM Airlines Group is
currently working on the gradual roll-out of the new corporate
brand image. The first changes will be visible starting in the
first half of 2016.
Each airline will continue to operate under their current brands
and identities. For any inquiry of LAN or TAM, please visit
www.lan.com or www.tam.com.br, respectively. Further information at
www.latamairlinesgroup.net
Corporate Communications
817-967-1577
mediarelations@aa.com
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