Three provisions contained in Chile’s antitrust regulator’s approval of Lan Airlines’ merger with Brazil’s Grupo TAM will remain after an appeal by the two carriers was dismissed.
’s merger with TAM takes another step toward completion with the Chilean Supreme Court’s decision to approve the deal but with all 14 of the conditions stipulated in the Tribunal de Defensa de la Libre Competencia’s (TDLC’s) approval from last year. LAN and TAM have already said they would proceed with their consolidation and had accounted for the financial implication should their appeal fail.
The merger could be finalized in May, although the airlines still need similar approvals from Brazil and the U.S. to finalize their partnership.
With the Supreme Court’s ruling LAN and TAM will have to end all code-share agreements with airlines outside their chosen alliance, which likely means an end to their relationships outside of the Oneworld group, and grant agents from Chile’s antitrust regulator Fiscalia Nacional Economica access to their internal data and procedures.
LAN also will have to relinquish four of its fifth-freedom rights to Lima.