LAN + TAM = "Latam" (Airline Merger)

[Napoleon]

I was just looking at the BBC website and they announced that LAN Chile had bought TAM Airlines from BRAZIL in a move that makes "Latam" the second largest airline company in the world.

Chile's Lan and Brazil's Tam merge to create huge airline

Chile's Lan airline has completed a takeover of Brazil's Tam, creating the world's second biggest airline, to be known as Latam.

After two years of negotiations, Tam shareholders agreed to the takeover.

The new company will have its headquarters in the Chilean capital, Santiago.
Brazil and Chile have enjoyed years of economic growth, which has brought about a massive increase in air travel but also recently tougher competition.

Tam, once Brazil's leading airline, has seen its profits drop as rivals began to offer cheaper tickets and better deals.

Lan - a much bigger company flying to more than 20 countries - has the financial resources to make Latam Airlines Group a serious competitor in Brazil's huge internal market as well as overseas...

Chile really has their $#!+ together. No word yet on flights from Brazil to the Falklands, but they could be coming. Whatever happens, this is pretty damned impressive for a country with only 16 million people.

Efficiency pays off.

http://www.bbc.co.uk/news/world-latin-america-18560343

 

[sleslie23]

I was just looking at the BBC website and they announced that LAN Chile had bought TAM Airlines from BRAZIL in a move that makes "Latam" the second largest airline company in the world.



Chile really has their $#!+ together. No word yet on flights from Brazil to the Falklands, but they could be coming. Whatever happens, this is pretty damned impressive for a country with only 16 million people.

Efficiency pays off.

http://www.bbc.co.uk/news/world-latin-america-18560343

Uh oh, here come the posts about how boring Chile is.

Also, if you try to say something positive about it, some jackass will come along and tell you if you love it so much why don't you marry it.

 

[expatinowncountry]

Indeed, this was expected and LAN has been for a long time the most efficient and well run air company in LAT. There will be further consolidation in the air industry what for us consumers may mean less competition and higher prices.

However, it is important to clarify "the second largest airline company in the world". By what? If I define the category carefully, I would also be the second in something in the world. LATAM will be the second largest company in total revenue. It won't be the second largest in profits, and even more important for us consumers, it will not be the second in term of the categories that matter for us: passengers carried, passenger kilometer flown, number of destinations, etc. Geography and market size do not help South American Airlines as most destinations are final and airports cannot work as a hub like for instance is the case of Dubai, Singapore, Atlanta, etc.