It was formally announced that the Brazilian competition authorities have given their blessing for the fusion of 2 of the most important airlines is South America – Chile’s LAN and Brazil’s TAM.
There are still some legal issues to work through to ensure that this merger does not lead to an anti-competitive monopoly but the two companies are now advancing at full speed to ensure that the competitive advantages enabled by the combined strength of the two companies reaches the end consumer as soon as possible.
The merger will create the second biggest airline company in terms of market worth and will enable the new airline to transport up to 45 million passengers and 832 thousand tons of freight per year.
The news comes at a time where airlines are struggling due to global economic woes having serious effects on travelling habits in the region. It is expected that this merger will cause other companies such as Argentina’s Aerolineas Argentinas and Brazil’s GOL to work closer together at bettering there prices and services.
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