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: 841
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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
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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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mercure1
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Re: AA - LATAM reapply for ATI JV

Thu Aug 15, 2019 6:44 pm

LATAM commercial SVP says they are working with AA and IAG to figure out how to rework the planned JV without the Chilean component to try once more to gain approval.

https://atwonline.com/airline-financial ... er-revenue
mercure f-wtcc
 
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LAXintl
Topic Author
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Re: AA - LATAM reapply for ATI JV

Thu Aug 15, 2019 9:34 pm

Comments from todays earnings call:

"Regarding the joint business associations, the Supreme Court in Chile ruled against the Joint Business Agreements with American Airlines and IAG. This certainly was a surprise for us as these agreements were previously approved by all other jurisdictions in the region. We are currently evaluating our next steps to be consistent with the Supreme Court's ruling."

...

..What is restricted is the Chilean geography. So what we would not be able to do is to implement in operation, partnership on flights that touch or flows that touch Chile.

.....

...."Supreme Court ruling in Chile which refused the approval of the JVs is final. We cannot appeal to that in Chile under the given circumstances. And now we are working with both American and IAG in looking into how make operational the JV with the carve-out. So that's where the focus is at this point in time, and we're working hard with both our partners in making sure to see what we can implement in the right way. That's the focus at this point in time."
From the desert to the sea, to all of Southern California
 
Planes4you
Posts: 310
Joined: Sun Aug 28, 2016 1:35 pm

Re: AA - LATAM reapply for ATI JV

Thu Aug 15, 2019 10:24 pm

I’m just waiting for the DOT to accept the AA/LATM jv because Brazil already accepted it
 
dcajet
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Re: AA - LATAM reapply for ATI JV

Thu Aug 15, 2019 10:34 pm

Planes4you wrote:
I’m just waiting for the DOT to accept the AA/LATM jv because Brazil already accepted it


AFAIK, a new JV agreement needs to be drafted, this time sans Chile. So the one Brazil, Colombia and other ratified previously is no longer valid. So back to the drawing board it is.
"Unattended children will be given espresso and a free kitten"
 
HP69
Posts: 49
Joined: Sat Jun 29, 2019 3:04 pm

Re: AA - LATAM reapply for ATI JV

Thu Aug 15, 2019 10:39 pm

There is no way that this will go through.
 
dcajet
Posts: 3923
Joined: Sun Aug 01, 2004 9:31 am

Re: AA - LATAM reapply for ATI JV

Thu Aug 15, 2019 11:54 pm

HP69 wrote:
There is no way that this will go through.


Pretty much all other South American countries (save from Chile and Argentina) had the previous one approved, so I don't see why they would have a change of heart this time around. Chile is out for good as the Supreme Court ruling is final.
"Unattended children will be given espresso and a free kitten"
 
qm001
Posts: 315
Joined: Sat Mar 13, 2004 2:25 am

Re: AA - LATAM reapply for ATI JV

Fri Aug 16, 2019 10:54 am

Looking forward to seeing this get thrown out! A JV is supposed to enhance a market, and not, crush competition!
I wish there was still a flying boat service on the African Lakes!
 
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vhtje
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Re: AA - LATAM reapply for ATI JV

Fri Aug 16, 2019 11:21 am

Pardon my ignorance, but if it's only Chile objecting, what is stopping AA/LATAM forming a JV on the routes/markets they serve outside of Chile?
I only turn left when boarding aircraft. Well, mostly. All right, sometimes. OH OKAY - rarely.
 
dcajet
Posts: 3923
Joined: Sun Aug 01, 2004 9:31 am

Re: AA - LATAM reapply for ATI JV

Fri Aug 16, 2019 3:17 pm

vhtje wrote:
Pardon my ignorance, but if it's only Chile objecting, what is stopping AA/LATAM forming a JV on the routes/markets they serve outside of Chile?


Well, Chile is where LATAM's HQ are located and one of its main markets, together with Brazil, Argentina and Peru; in fact. it's their second largest market in the region after Brazil.

Leaving Chile outside of a future JV seems to be the route AA/IAG/LATAM will take, but it is a less than optimal one from the airlines' perspectives.
"Unattended children will be given espresso and a free kitten"

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