Chile’s LAN Airlines has announced plans to buy Brazil’s TAM for $3.7 billion.
The transaction is subject to both airlines entering into a binding definitive agreement and satisfaction of conditions, including corporate and shareholder approvals and actions and regulatory approvals.
If approved, the new group will be called LATAM Airlines Group, but each of the airlines would continue to operate under their existing operating certificates and brands.
They plan to add new destinations “that neither company could have supported on its ownâ€.
“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,†added TAM CEO Marco Bologna.
The combined airline group would provide passenger services to more than 115 destinations in 23 countries.
By Bev Fearis
