The purpose of the out-of-court settlement is to protect and secure free competition on the routes on which these airlines operate. It was created by a structural agreement signed in September 2019, based on risks derived from certain contract and structural links between Delta and Ladam.
Court of Defense for free competition (TDLC) approved the out-of-court agreement signed between the Office of the National Economic Attorney (FNE) and Delta and Ladam Airlines, which includes various agreed mitigation measures.
Its purpose is to protect and secure free competition on the routes operated by these airlines. It was created by a structural agreement signed in September 2019, based on risks derived from certain contract and structural links between Delta and Ladam.
Strategic Alliance
The agreement between the two airlines is to reduce the risks to the capabilities derived from Delta’s acquisition of a 20% minority stake in Ladamin’s share capital.
It stems from strategic alliances or joint venture and code-sharing agreements for routes between the United States and Canada and some South American countries with the United States.
Considering that Delta has become an indirect debtor to another airline, they are also mitigating the risks from potential access to Ladamin’s financial information.
“They Defend Free Competition”
According to the FNE, structural and contractual links between airlines create risks in some of the routes analyzed, but out-of-court contractual actions are appropriate, effective and proportional to the stated risks.
TDLC, in its resolution, pointed out that the obligations agreed upon in the contract “create behavioral mitigation measures”. Defend free competition He concludes that they are proportionate and appropriate to mitigate the anti-competitive risks identified during the FNE Inquiry into Minor Acquisitions, Restructuring of Lodge Assets, JVA and ACC.
