LAN and TAM Plan Merger

LAN and TAM Plan Merger

September 13, 2010

LAN and TAM Airlines announced their intention to merge.  The merger, if approved, will result in one of the largest airlines in the world, and the largest Latin American carrier.  The new carrier would reportedly be called “LatAm Airlines Group”.  The combined company would fly to 115 destinations in 23 countries and employ some 40,000 workers.

If the merger goes ahead, it would be headed by LAN boss Enrique Cueto while TAM deputy chairman Mauricio Rolim would be company chairman, according to a BBC report.

The two airlines, with combined 2009 revenues of 8.5 billion dollars, would each retain their own brands, but operate under a merged parent company.

TAM is a member of the Star Alliance group of airlines, which includes BMI, Lufthansa, SAS and Air China. LAN, on the other hand, is a member of the Oneworld airline alliance, which includes Iberia, British Airways, Qantas and JAL. Alliance affiliation is just one of the many details that will need to be worked out before the merger can proceed.

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