LATAM Airlines To Deepen Ties With American, BA

LATAM Airlines said it had signed separate business agreements to deepen its ties with American Airlines and IAG's British Airways and Iberia.

"Throughout the implementation of the agreements, each airline will continue to operate independently and maintain control of their respective operations. These agreements will not cause any changes to the ownership or administration of the airlines," the company said in a statement.

American and LATAM plan to apply for immunity from antitrust law, which would allow the airlines to coordinate schedules and prices for flights between their countries of operation.

If approved, the agreement between American and LATAM would improve connectivity between South America and the US and Canada. The agreement between LATAM and British Airways and Iberia would increase flight options between Europe and Latin America.

"Customers will benefit from more frequent and convenient schedule options than the carriers could offer individually," said Doug Parker, chief executive of American Airlines.