Brazilian regulator probes airlines LATAM, Gol over potential price alignment
Investigation into Possible Price Alignment in Brazil's Airline Industry
Background of the CADE Investigation
SAO PAULO, April 28 (Reuters) - Brazil's antitrust watchdog CADE opened an administrative proceeding to investigate possible price alignment between airlines LATAM and Gol in the domestic passenger market, it said in a statement on Tuesday.
Initiation and Methods of the Probe
• The decision follows a probe from CADE's general superintendence that began in 2023.
• The investigation used advanced data analysis and found a persistent pattern of interdependence in price movements between the carriers on important routes, CADE said.
Responses from Involved Airlines
Regulatory Process and Airline Statements
• Chile-based LATAM and Abra Group's Gol will be notified to present their defense, and the process opening does not represent a final judgment, the regulator noted.
Gol's Response
• Gol denied the alleged practices in a statement, saying it has "always championed free competition and pricing freedom."
LATAM's Response
• LATAM also rejected CADE's claims, and said free competition is a "non-negotiable value" for the company.
(Reporting by Fernando Cardoso; Editing by Rod Nickel and Tom Hogue)
