geoshina
Posts: 197
Joined: Tue Dec 09, 2014 8:18 pm

Re: AA - LATAM reapply for ATI JV

Fri May 24, 2019 4:54 pm

I still wonder what are the benefits for the passenger.

GRU-MIA and SCL-MIA are pretty much owned by AA/LA/JJ.
 
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Aisak
Posts: 818
Joined: Thu Aug 11, 2005 10:56 pm

Re: AA - LATAM reapply for ATI JV

Fri May 24, 2019 8:02 pm

geoshina wrote:
I still wonder what are the benefits for the passenger.

GRU-MIA and SCL-MIA are pretty much owned by AA/LA/JJ.

If, as you say, MIA-SCL is owned by two carriers that with a large coopraration: FF benefits, LA codes ex-MIA, AA codes ex-SCL.... the best thing that could happen on the market is to allow an ATI.

Yes, on paper LA and AA are competitors. But it's quite easy not to compete when there are only 2 carriers on the route. If an ATI is granted, competition authorities can force carve-outs, release of slots for new entrants and other pro-competition measures. At least, they are writing down on a paper the reality of a market: that nonstop MIA-SCL behaves more like a monopoly than a wide open market in full competition.

And the market is more ample if we take into consideration one-stop options, so an "ATI-d" route running as a monopoly can't really set prices wat too high as traffic would route through other options.
 
dcajet
Posts: 3840
Joined: Sun Aug 01, 2004 9:31 am

Re: AA - LATAM reapply for ATI JV

Fri May 24, 2019 10:01 pm

Aisak wrote:
. If an ATI is granted, competition authorities can force carve-outs, release of slots for new entrants and other pro-competition measures.


Before this decision by Chile's Supreme Court, Chile's TDC (Tribunal de Defensa de la Competencia) had approved the ATI with some carve outs that AA & LA deemed unacceptable. They re filed the petition with the involvement of the Supreme Court and here we are...
"Unattended children will be given espresso and a free kitten"
 
kondoo
Posts: 21
Joined: Fri May 27, 2016 4:34 am

Re: AA - LATAM reapply for ATI JV

Sat May 25, 2019 5:50 pm

If, as you say, MIA-SCL is owned by two carriers that with a large coopraration: FF benefits, LA codes ex-MIA, AA codes ex-SCL.... the best thing that could


This is already happening so no, JV is not needed for this.

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