English | دری

Chile’s Lan and Brazil’s Tam creating the World’s Second Biggest Airline

in International Business

Chile’s Lan and Brazil’s Tam creating the World’s Second Biggest Airline

After two years of negotiation, Chile’s Lan airline finally completed a takeover of Brazil’s Tam. The merged airline company will be known as Latam, creating the world’s second biggest airline.

The new company will have its headquarters in the Chilean capital, Santiago.

Chile and Brazil have seen a massive increase in air travel but also recently tougher competition in the sector.

Once Brazil’s leading airline, Tam started to encounter losses as rivals began to offer cheaper tickets and better deals.

Latam’s chief executive, Enrique Cueto, told the Reuters news agency that the new carrier “will focus on Brazil and will introduce important changes in the local airline market”.

The combined revenues of Lan and Tam last year exceeded $13bn (£8.3bn). Their combined market value is second among the world’s airlines to Air China.

Analysts say both companies gain from the deal.

Tags assigned to this article:
Brazil airlineChile airlineLATAM

Related Articles

IMF cuts South Korea growth forecast

The International Monetary Fund (IMF) has cut South Korea’s growth forecast from 3.25% in June to 3% for this year

Empty shops at record levels in UK town centres

According to a survey from the British Retail Consortium (BRC), the proportion of empty shops in British town centres hit

Greek debt is containable, says the troika

The troika, which includes the European Commission, the European Central Bank and International Monetary Fund (IMF), has said Greece will

1 comment

Write a comment
  1. Second Hand Engines
    Second Hand Engines 26 September, 2012, 09:40

    very nice post, i certainly love http://dev.wadsam.com, keep on it !!!!!

    Reply this comment

Write a Comment

Your e-mail address will not be published.
Required fields are marked*