Latam: the merger of the airlines, TAM and LAN Chile
Officials from the Brazilian airline TAM announced that “had reached an agreement to merge its activities with the Chilean airline LAN, forming the group Latam.”
According to a statement released by TAM to the Brazilian stock market “each company’s drivers have control of their respective companies and preserve the existing structures of administration.”
TAM and LAN companies are still being marketed with the same flags.
According to a statement of Lan Airlines SA released this Friday in Chile “This transaction was intended to consolidate the economic interests of different stakeholder groups into a single entity, subject to the laws and regulations regarding foreign ownership restrictions.”
And that “the improvement of this transaction was expected to take six to nine months, which is subject to obtaining applicable regulatory approvals necessary to done it.”
Spokesman further clarified that “if this is achieved, this will form an airline that will be among the ten airlines and airline groups in the world.”
The new group will have a total of 40.000 workers and will have an air service to 115 destinations in 23 countries worldwide.
As was reported by the Chilean company “Latam group would be one of the world leaders in terms of size, profitability and market coverage and is also estimated to generate annual synergies of approximately $400 million.”