16 AUGUST 2010

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Article from BTNews 16 AUGUST 2010

South American airlines get together

LAN and TAM, South America’s largest airlines, broke the news late last Friday that they are seeking a merger.  LAN is part of oneworld, whilst TAM only joined Star Alliance earlier this year.  The grouping would create a new regional powerhouse to help meet booming demand for air travel in Latin America.  The proposed combined company flies to 115 destinations in 23 countries and would employ some 40,000 staff.  The provisional name is Latam Airlines Group.    LAN's Chief Executive Enrique Cueto will be the CEO of Latam Airlines, while TAM's deputy chairman Mauricio Rolim will be the chairman of the combined company. The airlines' brands will be kept separate and in a conference to the media call the senior officers said that they hoped to complete the merger in twelve months time. The whole package at this stage is non binding. www.tamairlines.com www.lan.com

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