LAN, TAM to merge

[codash1099]

I wonder which way the alliance choice will go, with LAN being OW and TAM with *A.

LAN and TAM to merge

 

[samh004]

Oh yay beginning of the end for OW.

Everyone they recruit has problems.

Though from what I’m now reading, it’s similar to the BA-Iberia deal, where they just create a parent company to save costs. Looks like both brands will stay where they are, but imagine if both brands could interoperate in both alliances, that’d be pretty cool.

 

[kamchatsky]

My guess OW given TAM only just joined *A.

 

[SeaWolf]

Too early to say really. The whole thing is just a proposal at this point and might well fall over in a heap of nationalist pride and regulatory restrictions. A lot of mergers get proposed that never actually happen.

 

[harvyk]

Oh yay beginning of the end for OW.

Everyone they recruit has problems.

Not really... The whole industry is going through an interesting time right now, whilst yes MX may have been a mistake for OW, you could hardly call things like JAL a bad pick for the time.

As for LATAM airlines, well, it could happen, but there are quite a lot of airline merger proposals which have fallen through in the past.

Also I would be very surprised if the contracts which govern membership in OW \ SA \ ST does not include clauses which state exactly what happens in regards to membership in the chosen alliance.

 

[odysseus]

Interesting mix of cultures and operations. I'd prefer they stayed separate - LAN I'm a fan of, TAM not so sure about.

 

[ric_melb]

I find it very curious. Why would one be embracing the end of One World?

And I would think that with Qantas, BA, American and JAL that just aint gonna happen.

 

[samh004]

I find it very curious. Why would one be embracing the end of One World?

It was sarcasm, reflected I thought with the rolling of my eyes. It just seems OW has a hard time picking new members that can actually hold their own.

And I would think that with Qantas, BA, American and JAL that just aint gonna happen.

I’d be thinking CX is in a stronger position than JAL :shock:

 

[Keith009]

It was sarcasm, reflected I thought with the rolling of my eyes. It just seems OW has a hard time picking new members that can actually hold their own.

Same observation can be made of *A. No idea about the financials of ScaryTeam airlines but they too seem to have their fair share, or more, of rather illustrious members...

 

[ric_melb]

Sorry samh004, was a bit slow on the uptake. Missed the rolling eyes!!!
And you are right about CX rather than JAL.

I better go back to Frequent Flyer school!

 

[samh004]

Sorry samh004, was a bit slow on the uptake. Missed the rolling eyes!!!

Since the upgrade they don’t look that roll-y

 

[cosi]

This report in Business Travel Asia may answer some questions

LAN of Chile and TAM of Brazil set to merge - Business Traveller Asia

The announced merger of leading Latin American airlines, LAN of Chile and TAM of Brazil, may have an impact on their status in Oneworld (LAN) and Star Alliance (TAM), but both companies said it was still too early say what this would be.
Over the weekend, the carriers announced plans to create the Latam Airline Group in a bid to position themselves for future expansion in a fast-developing region.
According to media reports, the two airlines, with combined 2009 revenues of US$8.5 billion, will each retain their own brands but operate under a merged parent company. It will be headed by Enrique Cueto, LAN CEO, who observed that they “were seeing dynamic growth in demand”, adding: “Now is our time to capitalise on this trend.”
Together, they will operate 115 destinations to 23 cities, with a fleet of 220 planes and 40,000 employees. Lan operates in Chile, Peru, Argentina and Ecuador, while TAM operates in Brazil and operates TAM Mercosur, also serving Paraguay.
Growth is expected to come from routes between Brazil and Europe and Africa and from Peru to North and Central America.
The move follows similar ones in the aviation industry, notably the proposed merger of United and Continental Airlines, which has just revealed their new branding identity as United Airlines (see news).
For more details, visit www.lan.com and www.tam.com.br

 

[samh004]

This report in Business Travel Asia may answer some questions

LAN of Chile and TAM of Brazil set to merge - Business Traveller Asia

I don’t think that answered any questions? :-|

 

[straitman]

I don’t think that answered any questions? :-|

Maybe this will answer some of the questions then samh004. The last paragraph of the link has the most useful FF information.

Consolidation, Demand Push LAN/TAM Merger

Aug 17, 2010

By Darren Shannon [email protected]

Increased demand for air transport across Latin America and the growing trend of consolidation among the world’s largest airlines prompted LAN Airlines’ proposed merger with Brazilian airline group TAM, according to top executives at both operators.

The all stock deal, which the two family-owned companies expect to be approved six to nine months after their Aug, 13 memorandum of understanding, will combine the two operators under a single parent company named LATAM Airlines Group. Both brands will remain separate, retaining current operating certificates. Management structures remain unchanged.

Stock listing for both entities will be replaced by a single listing as LATAM at on exchanges in New York, Santiago and Sao Paulo.

 

[gumpy]

Maybe this will answer some of the questions then samh004. The last paragraph of the link has the most useful FF information.

Consolidation, Demand Push LAN/TAM Merger

Aug 17, 2010

By Darren Shannon [email protected]

Increased demand for air transport across Latin America and the growing trend of consolidation among the world’s largest airlines prompted LAN Airlines’ proposed merger with Brazilian airline group TAM, according to top executives at both operators.

The all stock deal, which the two family-owned companies expect to be approved six to nine months after their Aug, 13 memorandum of understanding, will combine the two operators under a single parent company named LATAM Airlines Group. Both brands will remain separate, retaining current operating certificates. Management structures remain unchanged.

Stock listing for both entities will be replaced by a single listing as LATAM at on exchanges in New York, Santiago and Sao Paulo.

So you reckon this means LAN will stay OW and TAM *A?

 

[samh004]

So you reckon this means LAN will stay OW and TAM *A?

I think the new company that ties them in is only focused on cost savings, not consolidation of routes.

 

[straitman]

So you reckon this means LAN will stay OW and TAM *A?

I don't think so but i really do not want to guess which way they may go.

If you look at the last paragraph and see the part in (my) Italics as I originally posted it says:
Many questions remain, and the carriers’ executives are reticent to discuss specifics while merger negotiations continue. But they accept that some decision will have to be made, notably on fleet acquisitions and alliance membership. The companies even address the alliance issue on their new web site www.latamairlines.com, where they tell passengers, “In the short term, there will be no changes regarding our alliance partners. Continue to book and fly on alliance partners as you would today. After the transaction is completed, LATAM would evaluate the best alliance options for the combined carrier group.”

 

[SeaWolf]

Small update:
Star prepares for battle to win LAN-TAM allegiance
Looks like there's going to be a bit of a battle over which alliance the merged entity ends up in.

The Star Alliance is preparing for a competition against Oneworld to win the allegiance of the LATAM Airlines Group, the new holding company for Chile-based LAN and Brazil's TAM.

 

[Warks]

LAN becomes a lot bigger after TAM takeover - to leave OneWorld?

LAN's TAM takeover to create world's second largest airline

The interesting bit in bold/underline.

Chile's antitrust tribunal yesterday approved LAN Airlines' multibillion-dollar takeover of Brazilian carrier TAM with conditions, paving the way for the creation of one of the world's biggest airlines.Antitrust tribunal TDLC said the merged airline must comply with a host of mitigation measures, including ceding slots on the key Santiago to Sao Paulo route and renouncing participation in one of two global alliances.

 

[casanovawa]

Re: LAN becomes a lot bigger after TAM takeover - to leave OneWorld?

Hopefully not... Decent South American network and their South America airpass worked well just recently, 4 flights for about $830 or so...