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TAM, LAN agree to merger

written by australianaviation.com.au | August 16, 2010
LAN and TAM are to merge. (Rob Finlayson)

Two of South America’s largest airlines, TAM and LAN, have agreed signed a non-binding memorandum of understanding (MoU) to combine their operations under a single parent company.

Under the proposed merger, the two airlines and their affiliates would retain their separate branding but come under a new parent company called LATAM Airlines Group through an all-stock transaction. Each airline would retain its headquarters and management structure, yet it is expected that the merger would still produce at least US$400m (A$448m) in synergies.

Star Alliance carrier TAM is the largest carrier in Brazil and operates a mixed fleet of Airbus A320s, A330s and A340s as well as Boeing 767s and 777-300ERs. LAN is headquartered in Chile, and also has affiliates in Argentina and Ecuador and is a member of the oneworld alliance.

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