Brazil’s Council for Economic Defence has approved the merger between LAN Airlines of Chile and TAM Airlines in a unanimous vote. Conditions imposed include giving up two pairs of slots at the Guarulhos Airport for the Sao Paulo-Santiago route and an eventual resignation to one of the airline’s alliance memberships.
LAN Airlines has launched its fourth affiliate carrier, LAN Colombia. The move represents an important step into the Colombian market, after LAN acquired AIRES in November 2010, a Colombia-based airline.
Travel technology partner Amadeus and LAN Airlines have signed a multi-year full content agreement. The deal guarantees Amadeus travel agents worldwide access to the entire range of fares, schedules and inventory relating to the more than 18 million seats sold annually by the LAN Group Airlines.
Directors at LAN Airlines and TAM Airlines of Brazil have reiterated their desire to move forward with a planned merger, despite objections from the Tribunal de Defensa de la Libre Competencia de Chile. The news comes as anti-trust regulators in Spain approve the deal.
LAN Airlines has confirmed it expects to complete the takeover of TAM Airlines of Brazil in the first quarter of 2012, following conditional approval from regulators. However, the carrier said it would assess the impact of conditions imposed by regulators in Chile.
The proposed merger of LAN Airlines of Chile and Brazilian counterpart TAM Airlines has hit a further delay as a Chilean Constitutional Tribunal confirmed it would delay its decision in the matter.
The proposed merger of Chilean airline to Brazilian rival TAM Linhas Aereas has cleared its next administrative hurdle, with the antitrust unit of Brazil’s finance ministry granting its approval earlier. The body said it believed the deal would not harm competition in the country’s civil aviation market.
LAN Airlines has reported its preliminary monthly traffic statistics and punctuality indicators for April 2011 revealing a sharp increase in passenger traffic. The news comes as Chile-based LAN prepares to merge with Brazil-based competitor TAN.
Brazilian airline TAM has confirmed it saw a sharp drop in profits during financial 2010, despite an upturn in company turnover. The largest airline in Brazil saw profits fall $362 million, down some 48.9 percent on the previous year, in part due to rising operating costs for fuel, staffing and maintenance.
LAN Airlines has confirmed it will acquire the outstanding shares of Colombian airline AIRES, through the purchase of its parent entities. In a deal worth approximately US$32.5 million, Chilean LAN will acquire the remaining 98.94 per cent of the rival South American carrier.
Brazilian carrier TAM Linhas Aereas has outlined plans to merge with LAN Airlines of Chile to create the largest carrier in South America. However, discussions remain at a preliminary stage, with any transaction subject to approval from shareholders and regulators.