MercoPress. South Atlantic News Agency

Aerolíneas Argentinas and LATAM sign game-changing agreement

LATAM and Aerolíneas together are arguably the largest alliance in South America

Aerolíneas Argentinas and LATAM Airlines signed a key agreement for codeshare flights and reciprocity within their fidelity programs, thus resulting in arguably the largest alliance in South America. The understanding allows the sale of tickets on domestic and regional routes between both companies in addition to the accrual and redemption of miles, thus benefiting 48 million LATAM Pass members and more than 4 million Aerolíneas Plus members.

The arrangement came at a time when Argentine President Javier Milei is willing to privatize the national flag carrier. The new partnership is believed to have added some value to the company. On the other hand, LATAM is a private business that could be interested in acquiring Aerolíneas Argentinas. “LATAM is focused on this agreement, for the moment because it significantly increases the local offer,” a LATAM source was quoted by Infobae as saying.

LATAM, which closed its Argentine branch during the 2020 pandemic citing also privileges awarded to Aerolíneas Argentinas by Kirchnerism, currently operates some 27 international flights from the country through its other subsidiaries (Brazil, Chile, Peru, etc.). The largest airline in Latin America, LATAM entered that year into a restructuring process in Chile, Peru, Colombia, Ecuador, and the United States, as a result of the health crisis. This process ended in November 2022.

The codeshare agreement includes the joint marketing of more than 140 destinations in South America, reaching 55 domestic destinations in Brazil, 37 in Argentina, 21 in Peru, 19 in Colombia, and 8 in Ecuador, in addition to regional routes between Brazil, Colombia, Paraguay, Peru, Uruguay, and Argentina.

“Travel options for customers are expanding, reaching multiple destinations in Argentina and the region. These agreements provide greater benefits as a result of Aerolíneas Argentinas' extensive network of destinations, which strengthens the LATAM Group's flight connectivity in the region,” said Soledad Berrios, LATAM Group's Director of Strategic Alliances.

“This agreement will allow us to strengthen our Aerolíneas Plus program and expand the range of destinations in the region for our passengers, in addition to giving LATAM customers the possibility to take advantage of the entire range of local flights,” stressed Aerolíneas Network Planning Manager Leandro Serino.

It remains to be seen what will happen to Aerolíneas Argentinas' other agreements with carriers considered LATAM's direct competitors, airline industry experts pointed out.