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AVH - Avianca Holdings SA News Story

$0.88 0.0  0.0%

Last Trade - 08/05/20

Sector
Industrials
Size
Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £2.52bn
Position in Universe th / 6856

UPDATE 1-Chile Supreme Court rejects LATAM deal with American, BA and Iberia

Thu 23rd May, 2019 8:34pm
(Adds detail, background)
    SANTIAGO, May 23 (Reuters) - Chile's Supreme Court on
Thursday struck down a proposed joint business agreement between
LATAM Airlines  LTM.SN , the region's largest carrier, and
American Airlines  AAL.O , British Airways and Iberia Airlines.
    The decision comes more than two years after the carriers
announced their plans, which at the time was seen as a bold move
to save costs and coordinate prices, but also raised some
antitrust concerns. 
    LATAM shares were down around 0.6%, in line with the broader
Chilean benchmark index.
    The decision in Chile could also spell trouble for a
separate group of airline competitors, who had announced a
similar deal of their own to take on the LATAM alliance. 
    Late last year, United Airlines  UALCO.UL , Colombia's
Avianca Holdings  AVT_p.CN  and Panama's Copa Airlines  CPA.N 
announced a joint business agreement to share routes across
Latin America. That deal is also waiting on regulatory approval
but is at a much earlier stage. 
    LATAM did not immediately respond to a request for comment. 
    Chilean consumer advocacy group Conadecus appealed the
initial regulatory approval last October over concerns it could
increase fares and lower quality on routes. 
    Authorities in Uruguay, Colombia and Brazil each approved
the deal last year.  urn:newsml:reuters.com:*:nL2N1XB2EL

 (Reporting by Erik Lopez; writing by Dave Sherwood and Marcelo
Rochabrun; editing by Jonathan Oatis and Sandra Maler)
 ((dave.sherwood@thomsonreuters.com; +56 9 9138 1047, +56 2 2370
4224; Reuters Messaging:
dave.sherwood.thomsonreuters.com@reuters.net))
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