Tuesday , April 20 2021

FNE is trying to stop LATAM alliances with 3 airlines

Y Office of the National Economic Prosecutor (FNE) Submitted to Free Defense Court Competition (TDLC) A resource of complaints to ask the Supreme Court to dissolve the decision that the same tribunal issued on last October 31 and approved, subject to conditions, the leagues that the national airline proposes to carry out Latam with the British British Airways to Spanish Iberia – which belongs to the same owner- and with the American American Airlines.

In the appeal, the FNE asked the highest court in the country "revoke the decision that has been appealed and prohibited the realization of the Joint Business Agreements consultees, as these are contrary to the rules governing free competition ".

This is because, according to the organization, this act equates to an agreement between competitors, so that its reality would mean that the parties co-ordinate timetables, tariffs, sales and capability strategies, integration of multi-passenger programs and revenue distribution between the parties involved in the paths. "

"The parties would give them the best to act as independent economic agents in those paths where the JBA has their effects, with results that match some merger, although it is not possible to save the savings and cost savings of merger, "he said.

Among its arguments, the FNE also questioned the TDLC for approving the alliance despite the risks they would suggest and accused of having chosen to approve the allies by setting mitigation measures which would be "for a central purpose to restore, to the fullest extent, conditions of competition before taking into account the consults JBAs".

Finally, the FNE ensured that the measures set by the TDLC were ineffective, inadequate, tend to interpret, difficult to monitor and can even create distortions in the markets affected.

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