LATAM Airlines Group

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LATAM Airlines Group S.A.
Sociedad Anónima
Traded as BCS: LAN
NYSELTM
Industry Aviation
Founded 2012; 6 years ago (2012)
Headquarters Santiago, Chile,[1][2] São Paulo, Brazil [3]
Key people
Ignacio Cueto,[4] (Chairman)
Enrique Cueto, (CEO)
Products Passenger flights.
Cargo activity
Aircraft maintenance
Services Airline Services
Revenue Increase US$ 8.494 billion (2017)[5]
Increase US$ 200.7 million (2017)
Total assets Decrease US$ 18.798 billion (2017)
Total equity Increase US$ 4.267 billion (2017)
Number of employees
43,000 (2017)
Subsidiaries LATAM Argentina
LATAM Brasil
LATAM Chile
LATAM Colombia
LATAM Ecuador
LATAM Paraguay
LATAM Perú
Website www.latam.com

LATAM Airlines Group S.A. is a Brazilian-Chilean airline holding company incorporated under Chilean law and headquartered in Santiago, Chile. The group also has offices in São Paulo, Brazil. It is considered the largest airline in Latin America [6][7] with subsidiaries in Argentina, Colombia, Ecuador, Paraguay and Peru.[8][9][10][11][12]

History[edit]

Merger[edit]

Chile's LAN Airlines and Brazil's TAM Airlines signed a non-binding agreement on 13 August 2010, a binding agreement on 19 January 2011,[13][14] and papers to close the merger on 22 June 2012, with TAM Airlines shareholders agreeing to the takeover by LAN Airlines.[15] Enrique Cueto, former CEO of LAN, is CEO of LATAM;[16] Mauricio Rolim Amaro, formerly vice-chairman of TAM, became LATAM chairman.[17]

Government approvals[edit]

The agreement to establish LATAM was approved by Chilean authorities on 21 September 2011, with 11 restrictions. These include transferring four landing slots at São Paulo-Guarulhos International Airport to competitors interested in operating flights to Santiago de Chile's Comodoro Arturo Merino Benítez International Airport; renouncing membership to either the Oneworld or Star Alliance airline alliance; restricting the increase in capacity on flights between Brazil and Chile; and opening code-share possibilities and fidelity program membership to interested competitors.[18] On 14 December 2011, Brazilian authorities approved the agreement, imposing similar restrictions as Chilean authorities: LATAM would have to choose an alliance by August 2012; and frequencies between São Paulo and Santiago de Chile would have to be reduced. At the time TAM had two pairs of slots while LAN had four, LAN had to relinquish two pairs to competitors interested in using them.[19] On 7 March 2013, LATAM announced its final decision to choose Oneworld as its global airline alliance; as a result TAM left Star Alliance during the second quarter of 2014 to join Oneworld.[20]

Rebranding[edit]

In August 2015, it was announced that all LATAM Airlines Group airlines would fully rebrand as LATAM, with one unified livery to be applied on all aircraft by 2018.[21][22] The first of these aircraft were repainted (or delivered new) in a new LATAM livery in April 2016.

LATAM Airlines Group is currently working on the rebranding process, which is expected to be completed by 2019. Changes are becoming gradually more evident in physical spaces, on aircraft, at business offices, airport service counters, web sites, uniforms among others. Some changes are already in place, mainly in passenger travel experiences, such as the new cabin interiors which have been incorporated into the fleet, new VIP lounges in São Paulo and Santiago currently open to the public and forming part of the largest network of frequent flyer lounges in the region, and digital platforms such as the onboard entertainment system for mobile devices.[23]

Ownership[edit]

The company's shareholder structure as of 28 February 2018 is:

Shareholder Percentage
Chile Cueto Group 27.91%
Chile Administradoras de Fondos de Pensiones (AFP - Chilean Pension Funds) 21%
Qatar Qatar Airways 10.03%
Chile Eblen Group 5.93%
Chile Bethia Group 5.5%
United States American depositary receipts (ADR) 3.98%
Brazil Amaro Group 3%
Foreign investors 10.2%
Others 12.2%

Operations[edit]

As of 31 December 2017, LATAM Airlines Group is one of the largest airline groups in the world in terms of network connections, with its subsidiaries operating a combined fleet of 315 aircraft providing passenger transport services to 137 destinations in 24 countries; and 18 aircraft providing cargo services to 144 destinations in 29 countries.[24]

LATAM’s main hubs are Santiago de Chile's Comodoro Arturo Merino Benítez International Airport, Jorge Chávez International Airport in Lima, São Paulo–Guarulhos International Airport and El Dorado International Airport in Bogotá. The company is exploring the creation of a new hub in northeastern Brazil with the objective of expanding operations between Europe and South America.[25] Bogota was recently announced as the new hub for the Caribbean.[26]

Subsidiary airlines of LATAM Airlines Group[edit]

The airlines majority- and minority-owned by LATAM Airlines Group through the primary airlines' various subsidiaries are as follows:

See also[edit]

References[edit]

  1. ^ https://www.bloomberg.com/profiles/companies/LTM:CI-latam-airlines-group-sa
  2. ^ http://brandz.com/admin/uploads/files/BrandZ_LatAm_2017_Download.pdf
  3. ^ http://g1.globo.com/economia-e-negocios/noticia/2010/08/tam-anuncia-acordo-para-fusao-com-chilena-lan.html
  4. ^ "LATAM - Board of Directors". latamairlinesgroup.net. Retrieved 15 May 2017.
  5. ^ http://www.latamairlinesgroup.net/phoenix.zhtml?c=81136&p=irol-reportsannual
  6. ^ https://www.bloomberg.com/profiles/companies/LTM:CI-latam-airlines-group-sa
  7. ^ http://brandz.com/admin/uploads/files/BrandZ_LatAm_2017_Download.pdf
  8. ^ Webber, Jude; Lemer, Jeremy (15 August 2010), "LatAm airlines join consolidation trend", Financial Times, retrieved 16 August 2010
  9. ^ Sobie, Brendan (13 August 2010), "LAN and TAM to merge", Flight International, retrieved 14 August 2011
  10. ^ "Contact." LATAM Airlines Group. Retrieved on 25 January 2013. "Contact Pdte. Riesco 5711, 20th floor Las Condes Santiago, Chile "
  11. ^ http://i.imgur.com/IvRaefc.jpg
  12. ^ http://www.melhoresdestinos.com.br/wp-content/uploads/2015/08/logo_timeline_1024.jpg
  13. ^ "TAM and LAN announce binding agreement". TAM Linhas Aéreas. 19 January 2011. Retrieved 14 August 2011.
  14. ^ "LAN says signs non-binding deal with TAM to merge". Reuters. 13 August 2010. Retrieved 13 August 2010.
  15. ^ "BBC News - Chile's Lan and Brazil's Tam merge to create huge airline". Bbc.co.uk. 1970-01-01. Retrieved 2012-06-23.
  16. ^ "Enrique Cueto to be CEO of new LAN-TAM parent". Flight International. 13 August 2010. Retrieved 14 August 2011.
  17. ^ "LAN and TAM aim to complete merger by mid 2011". Flight Global. 14 August 2010. Retrieved 14 August 2011.
  18. ^ Seabra, Luciana (21 September 2011). "Tribunal chileno aprova fusão de TAM e LAN com 11 condições" (in Portuguese). Valor Econômico. Retrieved 26 September 2011.
  19. ^ Rodrigues, Eduardo; Froufe, Célia (14 December 2011). "Com restrições, CADE aprova fusão TAM/Lan" (in Portuguese). O Estado de S. Paulo. Retrieved 15 December 2011.
  20. ^ "LATAM - News Release". www.latamairlinesgroup.net. Retrieved 15 May 2017.
  21. ^ "LAN and TAM to operate as LATAM with a new livery" retrieved 9 August 2015
  22. ^ "LATAM's entire fleet to have new livery by 2018" retrieved 9 August 2015
  23. ^ Mutzabaugh, Ben (7 August 2015). "So long, LAN and TAM; Airlines will soon fly under LATAM brand". USA Today Online. Retrieved 31 August 2015.
  24. ^ http://www.latamairlinesgroup.net/phoenix.zhtml?c=81136&p=irol-reportsannual
  25. ^ "LATAM Airlines Group has to undergo a delicate balance of short term pain for strategic gain". www.centreforaviation.com. Centre for Aviation. Retrieved 4 September 2015.
  26. ^ Bohorquez Aya, Edwin (7 July 2015). "América Latina le habla duro a". El Espectador (Spanish). Retrieved 5 August 2015.

External links[edit]