SANTIAGO: The merger of Chile's LAN Airlines with Brazil's TAM airline will create the region’s largest airline with more than 40 percent of the Latin American market, the Financial Times reported.
Although the deal has been approved by Brazil's civil aviation authority, the merger still requires the approval of other national regulatory entities.
Chile's antitrust tribunal is also set to review the case on May 26 after a consumer group called for a probe.
“The merger is however widely expected to be approved in Chile this year. This will create the world’s second-biggest airline group in terms of market value, the 11th in terms of passenger numbers, and 15th in revenue terms,” the Financial Times reported.
“The new entity is expected to have the same number of passengers as the International Airlines Group (IAG), which operates British Airways and Iberia. It has already set its sights on opening European, United States and Mexican routes, as well as extra hubs.”
Source: Financial Times, Reuters
