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Company executives sign the JBA (Photo: Aerolineas Argentinas)

Aerolineas Argentinas and Alitalia Sign First Joint Business Agreement in Argentine Aviation History

Both members of the Skyteam alliance, and code-sharing since 2017, this agreement is the first of its kind for Argentine aviation. It will also allow the two airlines to harmonize the customer experience and deliver seamless world-class airline products between Argentina and Italy.“The strengthened cooperation with Aerolíneas Argentinas presents great growth opportunities for us in a market in which we expect to offer more seats to customers together with the leading Argentinian airline,” said Massimo Iraci, Alitalia´s Chief Strategy and Operations Officer, while on his visit to Buenos Aires to sign this agreement. ”Italy and Argentina, already tied by strong economic and cultural relations, will now be even closer.”

It is estimated up to 50 to 60 percent of the population or 20 million Argentines have full or partial Italian ancestry. Along with Spanish immigration, Italian community in Argentina formed the backbone of its society. Alitalia itself has a strong bond with the country: recently, Argentina’s President Mauricio Macri flew in one regular flight to Rome to start an official visit to the Vatican.

Grupo Aerolíneas Argentinas’ President Mario Dell’Acqua said that “This agreement will allow us to consolidate our international operation in a smart way: collaborating with a strategic partner as Alitalia. Building on this partnership, we want to improve the ‘air bridge’ between Argentina and Italy with benefits for both free competition and consumer choice.”

This JBA seeks to find ways to jointly coordinate more convenient schedules and connections, as well as eventually add new destinations. Additionally, it will allow both companies to share know-how and best practices. A key driver for the signature of this JBA is the growth potential of the exchange between Italy and Argentina, and the possibility of capturing it using the experience and knowledge of both companies.

The agreement will enter into effect and be implemented once it has been cleared according to applicable regulation on competition and approved by regulatory authorities.

There are more than 20 JBAs around the world, as part of a trend which has experienced an exponential growth in the global aviation market: in only a decade, international seats offered under these types of agreements went from 7 percent to approximately 75 percent. This allows profitable competition on international routes without the need for acquisitions or large capital bets in a carrier’s fleet or other resources.

Pablo Diaz
Pablo Diaz
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