LAN and TAM Airlines to merge

The two largest carriers in Latin America recently announced plans for a merger which would create a regional airline giant.

According to USA Today, in 2009, Chile-based LAN and Brazil-based TAM had a combined revenue of $8.5 billion. Each airline would continue to operate under seperate brand names, but work under the same parent company.

The merger would allow for passengers to travel to 115 destinations in 23 countries using the merged airline, according to the news source. They also have 200 aircraft scheduled for delivery in the future.

“As the world industry consolidates, we cannot stand still,” Enrique Cueto, CEO of LAN who will also head the new parent company, told the Financial Times. “If we want to survive in this world, we have to have a megafusion of our own.”

The merger will create the 11th largest carrier in the world, in terms of passengers, according to the news source, and will be the largest provider of service to South America.ADNFCR-3467-ID-19926319-ADNFCR

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