LATAM finally approve by Chilean antitrust authorities, but...

Discussion in 'Other Airlines | South America' started by jbcarioca, Sep 22, 2011.  |  Print Topic

  1. jbcarioca
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    jbcarioca Gold Member

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    They imposed eleven conditions, the most important of which are:
    1) transfer four slot pairs daily between GRU and SCL to other airlines which will comete with them;
    2) Not offer flights directly cometetive with those thaey must give up;
    3) Eliminate either OneWorld or Star Alliance.

    There are lots of details, and both companies promise to study the effects of the agreements.

    This is the remaining crucial step for approval of the merger although there still are approvals from Argentina and Spain, neither of which is expected to be a large issues.

    More details will be posted here once all this is available in English and the full decree is available too.
     
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  2. sobore
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    sobore Gold Member

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    http://blogs.ft.com/beyond-brics/2011/09/21/lan-tam-faces-frequent-flyer-points-tussle/

    Lan-Tam faces frequent flyer tussle

    Now that Lan and Tam have jumped another hurdle to create one of the world’s biggest airlines, more and more passengers are wondering what brand of frequent flyer points will they dole out.
    Chile’s antitrust authority has demanded that the new airline, Latam, renounce either the Oneworld alliance favoured by Chile-based Lan, or the Star Alliance alliance, favoured by Brazil’s Tam.
    The loser will effectively lose Latin America.

    Oneworld would cede its strength across Argentina, Chile, Colombia, Peru and Ecuador, as well as its South Pacific-South America link and the lion’s share of US routes and access to US hubs via partners such as British Airways, American Airlines, LAN and Qantas.

    Read More:
    http://blogs.ft.com/beyond-brics/2011/09/21/lan-tam-faces-frequent-flyer-points-tussle/
     
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  3. jbcarioca
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    jbcarioca Gold Member

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    That seems a large exaggeration of the reality to me. *A has much more to lose than OW IMO. OW has IB and AA which have near-comprehensive point to point coverage between all of Latin America and Europe/North America. AA alone carries far more passengers from Latin America/US than LATAM when merged. That does not even consider BA. Losing LAN would be inconvenient, but hardly disastrous.

    *A OTOH needs TAM and losing it would be a major loss because they do not have the regional coverage that OW foreign carriers do.

    That is why the focus is on GRU-SCL more than elsewhere because it is the only near-monopoly route of any consequence.

    It will be interesting.
     
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  4. sobore
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    sobore Gold Member

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    I think you are right. OW really has the market cornered on SA coverage. The loss of LAN amounts to a re-routing exercise.
     
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  5. zpaul

    zpaul Gold Member

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    It's important to read a bit further, as part of the conditions say that the merged airline cannot join an alliance that includes Avianca/TACA or which they are in the process of joining:

    6) Latam deberá renunciar, dentro de un plazo que no exceda 24 meses contados desde la fecha en que se materialice la Operación consultada, al menos a una de las dos alianzas globales en que a esa fecha participan sus partes, LAN y TAM. En ningún caso podrá pertenecer a aquélla en la que también el grupo Avianca/Taca sea miembro o asociado, o se encuentre en proceso de ingresar.

    As Avianca/TACA are poised to join *A in mid-2012, I think they are probably a bit too far along for the alliance to drop them in favor of the possibility of bringing LATAM on board (though they might - based on revenue it could be a very cut-throat decision).

    How badly do we think *A wants South America?
     
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