Leading Latin American Airlines TAM, LAN Complete Merger
By Brian Major
June 22, 2012 1:58 PM
Brazilian airline TAM announced the completion of a merger with Chilean carrier LAN Airlines on June 22 concluding a two-year effort. TAM shareholders agreed to exchange each of their shares for a 0.9 share of the merged company, Latam Airlines Group. The companies first announced merger plans in August 2010.
The new company will be publicly listed in Chile, Brazil and the U.S. With the agreement, Latam Airlines becomes Latin America’s largest carrier, and one of the world’s 10 largest in terms of revenue, said company officials. Latam Airlines brands include TAM, LAN Airlines and LAN Cargo, plus affiliates of each of the latter two. Latam will offer passenger service to 150 destinations in 22 countries, and transport cargo to 169 destinations in 27 countries.
Chile’s Cueto and Brazil’s Amaro families will control the company. Mauricio Rolim Amaro, currently vice chairman of TAM, will become chairman of Latam Airlines. Amaro’s sister, Maria Claudia Amaro, will remain as chairwoman of TAM's board and will also become a board member in Latam. Enrique Cueto, currently executive vice president and chief executive of LAN, will become executive vice president and chief executive officer of Latam. His brother Ignacio Cueto, currently LAN's president and chief operating officer, will become LAN's chief executive officer. Marco Antonio Bologna will remain as TAM's chief executive officer.