LAN Merger With TAM Progresses (AviationWeek.com)

October 27, 2011

LAN Airlines expects its merger with Brazil’s Grupo TAM to be completed in March as part of an expansion plan, under which the Santiago-based operator will also formally launch its LAN Colombia brand in December.

The merger received a boost late yesterday with a new accord between LAN and Chilean carrier PAL Airlines that resolves a dispute over the merger’s antitrust implications. According to LAN, PAL accepts the understanding that the larger carrier’s merger with TAM is not anti-competitive as well as LAN’s recent appeal on three demands made by Chile’s antitrust court. In return for this and PAL’s guarantee that it will not issue any further objection to the merger, LAN will cover the roughly $5 million of costs PAL has incurred by objecting to the merger.

Complete article in AviationWeek.com

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