Clearance given for South America airline alliance

Clearance given for South America airline alliance

Brazil’s anti-trust authorities have approved the merger of TAM with Chile’s LAN to create a new major airline force in South America.

The new airline, LATAM, is valued at about $14.5 billion and will represent 6% of global air transport.

The combined airline will serve 115 destinations in 23 countries, with a 40,000-strong workforce. The two carriers handled more than 45 million passengers last year.

Chilean authorities have already given the green light to the merger but had set 11 conditions, including fewer flights to the Peruvian capital of Lima.

Brazil’s conditions include a reduction in the number of flights between Sao Paulo and Santiago and that the two airlines join a single global grouping.

The new entity has yet to decide which alliance to join.

TAM is a member of the Star Alliance group of airlines, which includes United, Lufthansa, SAS and Air China. But LAN is a member of the British Airways-led Oneworld alliance.


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