Air France-KLM, Air Europa JV: EUR-Latin America aviation transforming

Air France-KLM and Air Europa are planning a new metal neutral joint venture for Europe-Central/South America routes. They are deliberating the detail of a collaboration that will widen and deepen existing commercial cooperation between Air Europa and both Air France and KLM over more than 15 years.

This includes "an in-depth legal analysis of the terms of this possible future agreement in order to ensure compliance with all applicable laws and regulations". It is hoped that the JV might launch in the summer of 2019.

Bilateral commercial cooperation between the SkyTeam partners is limited to codeshares on routes from their respective hubs to destinations in Europe. If concluded, the new JV would be the first such agreement between the two, and Air Europa's first JV.

In the market from Europe to Central/South America, Air France-KLM and IAG are neck and neck in the capacity ranking. IAG's JV with LATAM would pull ahead, whereas Air France-KLM's planned JV with Air Europa would maintain near parity in capacity and give it a clear lead in the number of destinations in Central/South America. It would also help to strengthen Air Europa in its intensifying competitive battle with its Spanish rival Iberia.