Brazilian competition watchdog approves Delta-LATAM JV

Brazil’s competition watchdog (Conselho Administrativo de Defesa Econômica – CADE) has approved a joint venture between Delta Air Lines (DL, Atlanta Hartsfield Jackson) and LATAM Airlines Group without any further conditions.  The green light is the first regulatory go-ahead for the JV since it was signed in May 2020. It only covers LATAM’s Brazilian operations and in no way prejudices the decisions of competition authorities in other countries where the Southern American holding is active. “While we remain focused on providing customers with the confidence to fly and are working towards a safe and responsible recovery in Latin American aviation, we have not lost sight of our long-term commitments. The CADE’s approval in just two months is testament to the joint venture’s benefits for customers and for Brazil,” LATAM Airlines Group Chief Executive Roberto Alvo said. The proposed JV will include, besides LATAM Airlines Brasil, LATAM Airlines, LATAM Airlines Perú, LATAM Airlines Ecuador, and LATAM Airlines Colombia. Delta Air Lines is a 20%-shareholder in LATAM Airlines Group. It is the only major shareholder which will not participate in a USD2.45 billion debtor in possession (DIP) financing deal the Latin American group has structured as part of its restructuring plan.