The merger of Brazilian airline TAM and Chilean LAN has been approved, creating the largest carrier in the Latin American region.
The new airline, LATAM, was first proposed in 2010 and is now valued at $14.5 billion, representing 6% of global air transport. It will fly to 155 destinations in 23 countries with 40,000 staff.
Last year, TAM and LAN flew more than 45 million passengers and 755,000 tonnes of cargo.
Both countries’ anti-trust authorities have approved the mergers, albeit with certain conditions. Chile’s body set 11 conditions, including fewer flights to the capital of Peru, Lima. The Brazilian authority requested a reduced number of flights between São Paulo and Santiago. It also asked that LATAM joins a single international body.
TAM is a member of the Star Alliance group, whereas LAN belongs to oneworld, yet neither airline has stated which one the new merged carrier will join.