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Chile’s Lan airline has completed a takeover of Brazil’s Tam, creating the world’s second largest airline by market value, to be known as Latam.

After two years of negotiations, Tam shareholders agreed to the takeover.

The new company will have its headquarters in the Chilean capital, Santiago.

Brazil and Chile have enjoyed years of economic growth, which has brought about a massive increase in air travel but also recently tougher competition.

source: BBC.co.uk

The merger of two major Latin American airlines has been approved, creating the largest carrier in the region.

Brazil’s anti-trust authorities said they approved the merger of the Brazilian airline TAM with Chile’s LAN, first proposed in 2010.

The new airline, LATAM, is valued at about $14.5bn (£9.4bn) and will represent 6% of global air transport.

Last year, TAM and LAN flew more than 45 million passengers and 754,777 tonnes of cargo.

The combined airline would fly to 115 destinations in 23 countries, with a 40,000-strong workforce.

source: bbc.co.uk

British Airways’ parent International Airlines Group (IAG) has a potential rival in bidding for TAP Portugal, with Brazilian carrier TAM considering a takeover of the Portuguese carrier.

TAP is a member of the Lufthansa-led Star Alliance, as is TAM, while BA is a leading member of the rival alliance Oneworld. However, TAM is awaiting regulatory approval for a merger with Latin America’s other major carrier, LAN – a Oneworld member.

source: travelweekly.co.uk

Chile’s antitrust court, TDLC, has ordered a suspension of the merger process between LAN and TAM while it conducts an investigation of the competitive impact of the merger. The court ordered the suspension while it hears a petition filed by the National Consumers Corp, a consumer rights organisation.

The organisation, known as Conadecus, argues certain routes between Santiago and São Paulo and Rio de Janeiro will be operated under monopoly control if the merger goes through. Shares in TAM were down 6.1% in trading on Monday, while shares in LAN declined 1%.

source: centreforaviation.com