15th Jan 2016 07:32
LONDON (Alliance News) - International Consolidated Airlines Group SA on Friday said it has signed a joint venture agreement between its British Airways, Iberia carriers and LATAM Airlines Group that will lead to the companies co-operating commercially on flights between the European Union and South America.
IAG is the owner of British Airways and Spanish carrier Iberia, which will work with Latin American airline LATAM Airlines. IAG also owns Aer Lingus, which is not involved in the venture.
LATAM Airlines Group is a recently formed group of companies in South America that has formed one of the largest airline groups in the world in terms of network connections, providing passenger transport services to about 135 destinations in 24 countries and cargo services to about 144 destinations in 26 countries, with a fleet of 323 aircraft.
LATAM Airlines Group recently announced that LATAM is the new brand for LAN Airlines, a group of South American airlines, TAM Airlines, the Brazilian brand of LATAM, and their affiliates which are based in Peru, Argentina, Colombia and Ecuador.
LATAM Airlines Group is currently working on the gradual roll-out of the new corporate brand image, and the first changes will be visible starting in the first half of 2016 - suggesting this is one of the first major deals signed.
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 airlines plan to seek approval from the appropriate competition authorities in South America and will inform the regulatory authorities in the European Union.
"The joint business would benefit customers by providing better links between Europe and South America, greater choice of flights and enhanced frequent flyer benefits," said IAG.
"Today's announcement is a significant step towards strengthening customer choice. The agreement would also strengthen the Oneworld alliance in which all the airlines are members," the company added.
IAG said customers would be able to travel more easily on the airlines' combined route network which would serve more than 100 destinations in South America and 87 destinations in Europe. The airlines, by working together to provide enhanced links for connecting passengers, will be able to expand customer choice via integrated networks, new non-stop routes, additional frequencies on existing routes and combined fares.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
International Airlines