LATAM Merger approved

[WC_EEND]

Source: http://www.bloomberg.com/news/2011-12-1 ... lator.html

Now that the merger is approved, I wonder what will happen with regards to alliances. The article says the airlines will remain operating under their own brands, but I doubt they'll stay in 2 alliances (TAM in Star and LAN in Oneworld). I could see TAM moving to Oneworld. Especially given Taca-Avianca is rumoured to join Star.

[RoMax]

It would be a miracle if TAM stays in Star Alliance. LAN is so important in Oneworld and Oneworld is so important for LAN (AA and Iberia are 'vital' partners for Latin America to/from Europe and North America). And also LAN going to Star would be a problem as LAN and Avianca-TACA are active in some of the same markets, and some of these countries do not allow two airlines in the same alliance and LAN doesn't want that either.

As from the time the merger became known, it was almost certain TAM would go to Oneworld, Avianca-TACA joining Star makes it 100% sure if you ask me... With Avianca-TACA and Copa Airlines Star ensured its presence in Latin America when they loose TAM (and they'll will)

[WC_EEND]

Not only that, if LATAM were to join Star and all of the others (Taca, Copa and Avianca) would join Star as well, Star would basically have a monopoly on the South American markets. Which is why I'm pretty sure they'll go Oneworld as well. There's also TAP which is doing very well on the Brazil-Europe routes (or so I've heard)

[RoMax]

Not only that, if LATAM were to join Star and all of the others (Taca, Copa and Avianca) would join Star as well, Star would basically have a monopoly on the South American markets. Which is why I'm pretty sure they'll go Oneworld as well.

Well yeay, that's a bit the same. Avianca-TACA is a head-on competitor on various South American markets (and they took over a Brazilian airline, but that one is only very very small). They never want to be with them in the same alliance.

There's also TAP which is doing very well on the Brazil-Europe routes (or so I've heard)

Yes indeed, they have a big Portugal-Brasil network, most of their long haul network is just Brazil. Not suprising (due to their history). BTW, this also a bit why LH is rumoured to be preparing a taking over of TAP (as TAP will be privatized). They know they will loose TAM to Oneworld, they really do not want to loose TAP to Oneworld also. Like SN is important for Africa, TAP is very important for the big and growing Brazilian(/South American) market.

[sn26567]

TAM and LAN Chile complete merger

South American airlines LAN Chile and Brazil’s TAM have completed their merger to create the biggest carrier in the continent.

The intended merger was first announced in 2010 and Brazil’s competition authorities gave permission for the deal to go ahead at the end of last year.

Both airlines will continue to operate under their existing brands but will now both be part of the LATAM Airlines Group which will initially offer flights to a total of 150 destinations in 22 countries.

More from ABTN

latamairlines.com

[Air Key West]

Apparently, last Thursday, at the Star Alliance meeting in Bogota to celebrate AviancaTaca and Copa joining Star Alliance, TAM was the only Star member not present and rumour has it within Star that TAM will leave the alliance to join oneworld of which LAN Chile is a member.
More details for those who read Dutch :
http://www.luchtvaartnieuws.nl/nl-NL/Ar ... ijkt_nabij

[kiwiandrew]

Now that Avianca-Taca have joined Star TAM legally must leave, it is just a question of when. Legal conditions attached to the merger ( read: take over of TAM by LAN) by regulators in both Chile and Brazil require that the airline NOT be in the same alliance as AV-TA.

[RoMax]

Indeed it's only a matter of time when TAM will leave. Also US Airways is said to be in danger according to the ceo of Star, and that's not a suprise either. If they go on with a merger with AA, it will be one big American airline in each alliance: Star will have United/CO, Skyteam will have Delta/NW and Oneworld American/US

[jumpjet]

As part of the regulatory approval process by the Brazilian and Chilian authorities certain conditions were laid down, I understand two of which were:

LATAM could not be in the same alliance as AVIANCA/TACA and if they were in an alliance it had to be one of the two to which LAN and TAM currently belong.

Given that Avianca/TACA joined STAR last week that means LATAM can't be in STAR. As neither LAN nor TAM were in the Skyteam they can't join them.

The only options therefore seem to be Oneworld or to become totally non-aligned. The hot tip is Oneworld - but time will tell.

[RoMax]

The only options therefore seem to be Oneworld or to become totally non-aligned. The hot tip is Oneworld - but time will tell.

Why would they be non-aligned??? LAN is member of Oneworld, TAM of Star => LANTAM can't be part of Star as AviancaTaca is already in it (TAM was the only Star member that was not represented during the meeting to celebrate AviancaTaca's entry last week) so TAM will leave Star and they'll join Oneworld. No question about that. What would be the advantage of being non-aligned?

[rwandan-flyer]

TAM will join Oneworld :

http://www.tam.com.br/b2c/vgn/v/inde...009508020aRCRD

[Boeing767copilot]

LATAM Airlines Group today confirmed its selection of oneworld as the global alliance for all its passenger airlines. The decision was announced at a meeting of the oneworld Governing Board held in Hong Kong today.

[sn26567]

It is strange to see that TAM announces that it will join oneworld (during the second quarter of 2014) on a press release whose letterhead proudly shows "TAM, A Star Alliance Member".

[RoMax]

It is strange to see that TAM announces that it will join oneworld (during the second quarter of 2014) on a press release whose letterhead proudly shows "TAM, A Star Alliance Member".

It looks strange indeed, but after all they are still a Star member and until the date they leave the alliance, they must present them as a member of Star (same with US Airways). Alliance ruling I assume.

[Boeing767copilot]

TAM Airlines will leave Star Alliance during the second quarter of 2014 - a specific date will be communicated later in 2013. Until then, customers can continue to enjoy the benefits of the current alliance.

[RoMax]

TAM Airlines will leave Star Alliance during the second quarter of 2014 - a specific date will be communicated later in 2013. Until then, customers can continue to enjoy the benefits of the current alliance.

Indeed and until that date they'll have to present themself as a Star-member, just like any other member. With the difference they'll be less present during new projects, Star-meetings,... TAM was the only airline that was not at the joining ceremonies of Copa Airlines and Avianca-TACA in 2012 (at one of those meetings, the ceo of Star already said TAM would normally leave the alliance, but that it would also have to pay a fine to Star).