The agreements with LATAM, which operates LAN Airlines in Chile and TAM in Brazil, would improve connectivity between South America and the United States and Canada in the case of American and increase flight options between Europe and Latin America in the case of IAG. The geographical scope of the Alliance is that of transatlantic services between North America and Europe. Aer Lingus serves up to 14 destinations from Ireland to the United States. With a hub in Dublin, the airline also offers routes to 47 destinations in Europe, including 12 unique European destinations to which American currently does not market any services. Aer Lingus only carries about 3% of travelers between the U.S. and Europe, so it`s not a massive airline in this market that would give a significant market share to oneworld airlines that use this route. American and its joint business partners, including Iberia and Finnair, will introduce eight new transatlantic routes for the summer of 2020 and extend five seasonal flights beyond the summer to give travellers more opportunities than ever to reach Europe. The DOT believes that Aer Lingus` accession to the Joint Undertaking Agreement is still beneficial to the public. Oneworld airlines say the amended deal will generate $67 million in additional profits per year, mainly through improved connectivity. If the new agreements were approved by competition authorities, they would help airlines coordinate flight schedules and prices, similar to the revenue-sharing agreement already in place between IAG and American Airlines. The CMA stressed that the case was at an early stage and that the agreement would not be considered contrary to competition law. Aer Lingus` accession to the joint venture agreement would affect less than 90% of passengers between the United States and Europe. In markets where the number of competitors is decreasing, it is worrying, but less than 2% of all European passengers from the United States in 100 markets out of a total of 5,593.

On many lines there will still be a lot of competition. Both agreements are subject to authorization by authorities in different countries. American and LATAM are considering seeking immunity from antitrust law, while IAG said it could take between 12 and 18 months to get the green light for their consent. “During this period, the Joint Undertaking opened 45 new routes, including 14 between the United Kingdom and the United States. In addition, airlines are able to adapt their schedules and frequencies in order to improve customers` travel opportunities.¬†When the parties` commitments expire in 2020, the European Commission will be able to reassess the agreement, but there is no obligation to do so. . . .