23 Jun 2012

Latin American airlines merge

11:11 am on 23 June 2012

The Chilean airline LAN has completed a takeover of Brazil's TAM, creating the world's second biggest airline, to be known as LATAM.

After two years of negotiations, TAM shareholders agreed on Friday to the takeover.

The new company will have its headquarters in the Chilean capital Santiago.

The BBC reports the combined revenues of LAN and TAM last year exceeded $US13 billion. Their combined market value is second among the world's airlines to Air China.

LAN flies to more than 20 countries.

The takeover is expected to save $US700 million in operating costs in the next four years.