LAN Airlines & TAM merger would create new LatAm airline giant
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LAN Airlines & TAM merger would create new LatAm airline giant
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.
* 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.
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Lan has good safety records and probably will help the brazilian sister to improve its standards.... Good news for brazilians costumers! Lets see what will happen concerning the employees. 
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I dont think that it will affect either Tam or Lan employees, in particular crews, maybe some seat heater can be made redundant, no big loss! I believe the market itself may be more impacted, by creating a dominating carrier, others may get suffocated, there is already an unbalance, hopefully foreign companies can invest in Latin American companies stronger soon, to keep them safe from predatory market practices.
Does that mean TAM MRO when merged with LAN's in house and 3rd party maintenance company therefore one big MRO or will it be like Air France Industries & KLM Engineering branded?
Be interesting to see the joint capabilities promoted as LAN itself doesn't advertise its maintenance capabilities on its web and whats even more puzzling is with the subsidiaries such as LAN Argentina, LAN Peru...in the annual report, it mentions LAN Argentina having its own maintenance base opened up at Jorge Newbery Airport in 2009. This included hangar and facilities which cost over $3.2m USD.
Be interesting to see the joint capabilities promoted as LAN itself doesn't advertise its maintenance capabilities on its web and whats even more puzzling is with the subsidiaries such as LAN Argentina, LAN Peru...in the annual report, it mentions LAN Argentina having its own maintenance base opened up at Jorge Newbery Airport in 2009. This included hangar and facilities which cost over $3.2m USD.
