LAN Airlines S.A. and TAM S.A. has ventured into a non-binding MOU. This MOU talks about their intentions to combine their holdings under a single parent entity. The handshake has created a new Latin American airline group which encapsulates Lan Airlines and its affiliates in Peru, Argentina and Ecuador; Lan Cargo and its affiliates; TAM Lineas Aereas S.A.; TAM Mercosur and all other holdings of LAN and TAM.
Latin American airline group would provide passenger services to more than 115 destinations in 23 countries and cargo services throughout Latin America and across most of the globe. With more than 40,000 employees, the airline would operate a fleet of more than 220 aircrafts. Travelers will benefit as more flights are introduced and frequent flyer program members would earn and redeem miles on more flights.
Marco Bologna, CEO of TAM said, “Combining our strengths and complementary networks will bring great benefits to our customers, employees, shareholders and Latin America. Together, LAN and TAM will be able to offer new destinations that neither company could have supported on its own. This will position us to compete with the foreign carriers that continue to increase service to our region while creating new jobs in our home countries.”
Enrique Cueto, CEO of LAN Airlines voiced, “Today is a great day for LAN, our customers, our employees and our shareholders. Together we have built LAN into a true leader in Latin America. We have much to be proud of and much to be thankful for. But as the industry consolidates, we cannot stand still. Today we announced our intention to join forces with our friends at TAM, setting forth on a journey that will create one of the leading airline groups in the world.”