LATAM Airlines CEO Roberto Milosawlewitsch said he's taking a wait-and-see approach to a proposed merger of two of the Chilean airline's largest competitors.

Milosawlewitsch waiting for Brazilian regulators to review the merger of two of its larger rivals in the region, Azul (AZUL) and Abra, and how it pertains to competition protection.

During conference call Friday to discuss the South American airline's Q4 financial results, Milosawlewitsch said while it's still early in the process, and he anticipates Brazil's Administrative Council for Economic Defense, or CADE, would act to mitigate the potential impact on competition posed by the deal between Azul and Abra, the majority owner of Gol Linhas Aereas Inteligentes, announced Jan. 16.

"I think that we need to see ... their public filing, what mitigations they will propose (and) CADE needs to review," Milosawlewitsch said. "I don't think it's time to speculate what will happen, and we'll see how this evolves in the next few weeks and months."

"This is a big transaction eventually, which will have a lot of details" for CADE to review, he said, according to transcript of Friday's conference call by FactSet.

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