The 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.
IAG says 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.
The agreement would also strengthen the oneworld alliance in which all the airlines are members.
Willie Walsh, IAG’s chief executive, said: “We already have a close commercial relationship with LATAM Airlines Group as part of oneworld and we look forward to enhancing the relationship further. This joint business would benefit customers by providing them with easier journeys to more destinations with better aligned schedules and increased frequencies. This would boost both tourism and business travel between South America and Europe.”
Enrique Cueto, LATAM Airlines Group’s chief executive, said: “This is excellent news for Latin America. This agreement would significantly improve connectivity bringing Europe closer to our region by providing a wider choice of flights and great benefits to our customers. This step is key to ensuring we offer the best network to our customers and increase the options to add new destinations to LATAM and its affiliates’ networks.”
It is anticipated that regulatory approval could take between 12 and 18 months.