UPDATE 1-LAN-TAM merger would create new LatAm airline giant | Reuters
* Brazil's TAM, Chile's LAN unveil plans to merge
* Deal would create biggest airline in Latin America (Adds background on ramifications of merger)
SAO PAULO Aug 13 (Reuters) - Brazil's largest airline TAM Linhas Aereas (
TAMM4.SA)(
TAM.N) plans to merge with Chilean rival LAN LAN.SN(
LFL.N), a deal that would create easily the biggest carrier in Latin America.
The merger, if it goes through, would create a new regional powerhouse to help meet booming demand for air travel in Latin America.
TAM said in a regulatory filing on Friday the new company would be named the Latam Airlines Group. The airlines' brands will be kept separate, the statement said.
LAN also confirmed the agreement, which it said was non-binding.
Prior to the deal's announcement, TAM shares jumped 6.5 percent to 30.20 reais in Sao Paulo. LAN surged 7.7 percent to 13,900 Chilean pesos in Santiago.
LAN is a member of the Oneworld alliance of airlines, which also has American Airlines (
AMR.N), Mexicana and British Airways among its members. TAM is a member of Star Alliance.