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LAN Airlines and TAM Airlines merge to create new carrier LATAM Airlines

LAN Airlines flights as well as those by TAM Airlines will now be operated through a newly created carrier.

Chile’s LAN Airlines recently announced it has completely acquired its Brazilian rival TAM Airlines, and is all set to create the world’s second largest carrier by market value.

The airline in a statement said that with this deal it expects to have $700 million in cost savings within four years.
 
The newly-created carrier LATAM Airlines Group, which has come after the merger of LAN Airlines and TAM Airlines, will become operational at a time when there is economic slowdown coupled with demand for air travel in Brazil, the Latin America’s biggest aviation market.

Enrique Cueto, Chief Executive of LATAM Airlines Group, said that he expected the Santiago-based carrier will be able to produce significant cost savings within a year.

He also said that the newly created airline will be primarily focusing on improving its performance in Brazil.

The new LATAM Airlines will be serving nearly 150 destinations in 22 countries across the world.

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