Airlines: Strategic Alliance in the region

Avianca, United Airlines and Copa Airlines, signed a trade agreement that will allow them to agree flight routes in the American continent.

Tuesday, December 4, 2018

To ensure the commercial agreement reached on November 30th becomes effective, the three airlines plan to apply for regulatory approval and a complementary antitrust immunity (ATI) subsidy in the coming weeks from the U.S. Department of Transportation (DOT) and authorities in 19 Latin American countries.

See "Avianca to Partner with United Airlines"

The airline reported that the alliance, in addition to the United States, will cover Latin America, except Brazil, Mexico and the Caribbean islands. In other words, it will be a route agreement between the United States and Argentina, Belize, Bolivia, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guyana, French Guyana, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Suriname, Uruguay and Venezuela.

Ecuador will not be in the alliance for now either, waiting for its authorities to sign an open skies agreement with the United States.

This process lasted almost two years, as in February last year Avianca reported that it reaffirms its commitment to move forward in the search for a strategic partner. After analyzing the different offers and alternatives presented in this process, Avianca Holdings SA opted for a long-term strategic-commercial alliance with United Airlines, whose terms are pending negotiation.

Read full article (In Spanish).

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