LATAM signs two separate JVs with BA/IB and AA
Jan 14, 2016, 6:40 pm
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LATAM signs two separate JVs with BA/IB and AA
Now pending approval from the relevant authorities, the EU and multiple South American nations.
LATAM says it expects the agreement to formalise within 18 months.
Link: http://www.iairgroup.com/phoenix.zht...int&ID=2129415
Link: http://atwonline.com/finance-data/la...erican-and-iag
Thumbs up all round
LATAM says it expects the agreement to formalise within 18 months.
Link: http://www.iairgroup.com/phoenix.zht...int&ID=2129415
AG and Latam Airlines Group Sign Joint Business Agreement
International Airlines Group (IAG) has signed a joint business agreement between British Airways, Iberia and LATAM Airlines Group on flights between Europe and South America.
The joint business would benefit customers by providing better links between Europe and South America, greater choice of flights and enhanced frequent flyer benefits.
The airlines plan to seek approval from the appropriate competition authorities in South America and will inform the regulatory authorities in the European Union.
Under the joint business, British Airways, Iberia and LATAM Airlines Group would cooperate commercially on flights between the European Union and South America. They would expand their codeshare arrangements on flights between and within Europe and South America, significantly increasing the number of destinations that the airlines can offer customers.
Today’s announcement is a significant step towards strengthening customer choice. The agreement would also strengthen the oneworld alliance in which all the airlines are members.
Customers would be able to travel more easily on the airlines’ combined route network which would serve more than 100 destinations in South America and 87 destinations in Europe. By working together to provide enhanced links for connecting passengers the airlines would expand customer choice via integrated networks, new non-stop routes, additional frequencies on existing routes and combined fares.
In addition, customers would have more opportunities to earn and redeem frequent flyer miles (Avios, LANPASS and TAM Fidelidade) on flights worldwide as well as continued reciprocal airport lounge access.
International Airlines Group (IAG) has signed a joint business agreement between British Airways, Iberia and LATAM Airlines Group on flights between Europe and South America.
The joint business would benefit customers by providing better links between Europe and South America, greater choice of flights and enhanced frequent flyer benefits.
The airlines plan to seek approval from the appropriate competition authorities in South America and will inform the regulatory authorities in the European Union.
Under the joint business, British Airways, Iberia and LATAM Airlines Group would cooperate commercially on flights between the European Union and South America. They would expand their codeshare arrangements on flights between and within Europe and South America, significantly increasing the number of destinations that the airlines can offer customers.
Today’s announcement is a significant step towards strengthening customer choice. The agreement would also strengthen the oneworld alliance in which all the airlines are members.
Customers would be able to travel more easily on the airlines’ combined route network which would serve more than 100 destinations in South America and 87 destinations in Europe. By working together to provide enhanced links for connecting passengers the airlines would expand customer choice via integrated networks, new non-stop routes, additional frequencies on existing routes and combined fares.
In addition, customers would have more opportunities to earn and redeem frequent flyer miles (Avios, LANPASS and TAM Fidelidade) on flights worldwide as well as continued reciprocal airport lounge access.
Chile-headquartered LATAM Airlines LAN.SN said on Thursday that it has inked separate business agreements to deepen its ties with American Airlines Group Inc and IAG's British Airlines and Iberia, members of the Oneworld Alliance.
"Throughout the implementation of the agreements, each airline will continue to operate independently and maintain control of their respective operations. These agreements will not cause any changes to the ownership or administration of the airlines," the company said in a statement.
American and LATAM plan to apply for immunity from antitrust law, which would help the airlines coordinate schedules and prices for flights among their countries of operation.
If approved, the agreement between American and LATAM would improve connectivity between South America and the United States and Canada. The agreement between LATAM and IAG's British and Iberia would increase flight options between Europe and Latin America.
"Throughout the implementation of the agreements, each airline will continue to operate independently and maintain control of their respective operations. These agreements will not cause any changes to the ownership or administration of the airlines," the company said in a statement.
American and LATAM plan to apply for immunity from antitrust law, which would help the airlines coordinate schedules and prices for flights among their countries of operation.
If approved, the agreement between American and LATAM would improve connectivity between South America and the United States and Canada. The agreement between LATAM and IAG's British and Iberia would increase flight options between Europe and Latin America.
Last edited by SinoBritAsia; Jan 14, 2016 at 9:41 pm Reason: Added IAG statement. Details from LATAM
Jan 14, 2016, 6:45 pm
#2
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Lovely. The TATL and the trans-Americas markets seems to be strengthening quite a bit!
Hopefully the same improves on the Europe-Asia and intra-Asian front, where such cooperation seems sparse.
Hopefully the same improves on the Europe-Asia and intra-Asian front, where such cooperation seems sparse.
Jan 15, 2016, 1:46 am
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Interesting also announced this week that IAG over took Lufthansa in terms of Revenue Passenger Kilometers (RPK) flown (helped a bit by EI, but the full effect of that has not come into force yet). Bloomberg
Air France-KLM is still the largest by this measure but the value of IAG is 7 times that of Air France-KLM and nearly 2.5 times that of Lufthansa group.
With AA being the biggest airline in north America (by RPK), if IAG becomes number one in Europe I wonder if that will change the dynamic of One World in competing with Star Alliance?
Air France-KLM is still the largest by this measure but the value of IAG is 7 times that of Air France-KLM and nearly 2.5 times that of Lufthansa group.
With AA being the biggest airline in north America (by RPK), if IAG becomes number one in Europe I wonder if that will change the dynamic of One World in competing with Star Alliance?
Jan 15, 2016, 4:12 am
#6
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You would also need to look at the distribution of traffic. Last I looked, BA was very strong on EUR-North America traffic but comparatively weak on EUR-Asia. I have not looked at recent figures but I would expect it to still be true. *A has never been especially strong on Europe-North America.
Jan 15, 2016, 4:17 am
#7
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Finally! LATAM has a strong and efficient product, their lounges are also very good. The IT needs significant improvements as well as partnership, booking a last minute Avios ticket with TAM from Brasil was a nightmare.
Jan 15, 2016, 4:25 am
#8
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You would also need to look at the distribution of traffic. Last I looked, BA was very strong on EUR-North America traffic but comparatively weak on EUR-Asia. I have not looked at recent figures but I would expect it to still be true. *A has never been especially strong on Europe-North America.
True and I don't have the data either, but I can see Chinese carriers taking the size of OW in these mature and wealthy markets into consideration.
We may yet see the day when you can conntect AA > BA > CA
Jan 15, 2016, 4:34 am
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Interesting also announced this week that IAG over took Lufthansa in terms of Revenue Passenger Kilometers (RPK) flown (helped a bit by EI, but the full effect of that has not come into force yet). Bloomberg
Air France-KLM is still the largest by this measure but the value of IAG is 7 times that of Air France-KLM and nearly 2.5 times that of Lufthansa group.
With AA being the biggest airline in north America (by RPK), if IAG becomes number one in Europe I wonder if that will change the dynamic of One World in competing with Star Alliance?
Air France-KLM is still the largest by this measure but the value of IAG is 7 times that of Air France-KLM and nearly 2.5 times that of Lufthansa group.
With AA being the biggest airline in north America (by RPK), if IAG becomes number one in Europe I wonder if that will change the dynamic of One World in competing with Star Alliance?
Man that article barely mentions VY but it's got a huge amount of traffic and crazy growth rate.
Jan 16, 2016, 6:12 am
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Although these have been announced as two discrete ventures, I think it unlikely that the timing be coincidental.
What I would hope to see is better compatability between fares between the three continents. At present if one wishes to build a trip comprising Europe, North and South America on oneworld, the only option is a oneworld Circle Atlantic fare (very pricey and requires a proper TA to arrange) or a pricing unit comprising several full Y/J fares.
What I would hope to see is better compatability between fares between the three continents. At present if one wishes to build a trip comprising Europe, North and South America on oneworld, the only option is a oneworld Circle Atlantic fare (very pricey and requires a proper TA to arrange) or a pricing unit comprising several full Y/J fares.
Jan 16, 2016, 8:21 am
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We all live in hope. It would be perfect for the 788/789 depending on route demographics and predicted market but at some point I reckon we'll get it. Will be a hell of a long flight though. It's nearly 7,300 miles so a good 14-15 hours each way.... Will be interesting to see if BA tries to develop these super long routes. Others would be Jakarta and Hawaii and then after that it's the best part of Australia...
FD.
FD.
Jan 16, 2016, 8:41 am
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It's very very long and I would imagine that there is not much high yielding demand for it.
At present there are a number of obvious connecting options (MAD, SAO, RIO) that would be difficult for a nonstop to compete with.
If LA had a spare plane for longhaul available I would suspect they would get better use out of sending it to PEK or PVG instead.
At present there are a number of obvious connecting options (MAD, SAO, RIO) that would be difficult for a nonstop to compete with.
If LA had a spare plane for longhaul available I would suspect they would get better use out of sending it to PEK or PVG instead.
Jan 16, 2016, 8:51 am
#15
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It's very very long and I would imagine that there is not much high yielding demand for it.
At present there are a number of obvious connecting options (MAD, SAO, RIO) that would be difficult for a nonstop to compete with.
If LA had a spare plane for longhaul available I would suspect they would get better use out of sending it to PEK or PVG instead.
At present there are a number of obvious connecting options (MAD, SAO, RIO) that would be difficult for a nonstop to compete with.
If LA had a spare plane for longhaul available I would suspect they would get better use out of sending it to PEK or PVG instead.