Merger Reshapes Latin American Air Market – The Wall Street Journal.
June 23, 2012 Leave a comment
Merger Reshapes Latin American Air Market
http://online.wsj.com/article/SB10001424052702304898704577482533106572416.html
SÃO PAULO—Airline consolidation took another step forward Friday with the stock-swap takeover of Brazilian airline TAM SA TAM +0.34%by Chile’s LAN Airlines SA, LFL +1.36%creating South America’s largest carrier by traffic, with an estimated market capitalization of $13 billion, the largest of any airline in the world.
The new company, Latam Airlines Group SA, encompasses airlines in six South American nations and has four major hubs—São Paulo, Lima, Santiago and Bogotá. Latam would control 40% of the passenger traffic within South America and be the second-largest airline by passengers after American Airlines on routes to the U.S. and third-largest to Europe.
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