25 JUNE 2012
The Business Travel News
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The takeover of Brazil’s TAM by Chile’s LAN was completed last week, the new combined carrier now called LATAM Airlines. It creates the world's second-largest airline by market value in a deal that executives expect to yield up to US$700m in annual cost savings within four years.
In a statement Santiago-based Chief Executive, Enrique Cueto, said that he expects a decision within six months as to which worldwide grouping the new airline will continue with. Currently LAN is a member of the oneworld alliance, while TAM belongs to Star Alliance.
In terms of European operations LAN has daily Airbus A340 services to both Frankfurt and Madrid, whilst TAM serves Frankfurt, Heathrow, Madrid, Milan and Paris-Charles de Gaulle.
For the future the airlines have both the Airbus A350 on order and the Boeing 787. www.latamairlines.com