More LATAM news. They expect approval soon

Discussion in 'Other Airlines | South America' started by jbcarioca, Jul 3, 2011.  |  Print Topic

  1. jbcarioca
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  2. Bay Pisco Shark
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    The stock of both seems to be pretty happy the past several days.
     
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  3. jbcarioca
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    That is one more reason to believe this. I'm quite curious to see who will get the SCL-Brazil slots they'll be forced to give up. The additional competition will be good for all of us.
     
  4. Bay Pisco Shark
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    SKY Airline is probably the most ready - they have a few planes that can make the distance and seem to be in a modest expansion mode. (I don't know what aircraft are on order.) I don't know if PAL has the fleet. PLUNA doesn't have a plane that can make it.

    What will be most interesting (ok, maybe not) is that the carriers most likely to take the routes are 1 cabin carriers, and these are fairly lengthy routes - so a certain segment of the business travel market won't even be interested if the entrants don't up their game (i.e., a premium cabin of sorts, lounge access, etc). In the US, plenty of business travelers will fly WN for the shorter hops - frequency, price, flexibility, etc (1 to 2 hours) but when it comes to anything longer or with connections, the % drops.
     
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  5. jbcarioca
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    Why not GOL, Trip, Azul, Avianca?
     
  6. Bay Pisco Shark
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    Because my post was Chile-centric :) From the Chile side of the equation, I think there will be more confidence flying a Chile carrier. (On the Brazil side of the equation, are there any restrictions re: fifth and seventh freedom rights?)
     
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  7. jbcarioca
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    Of course, there are those restrictions on almost everyone. The question will be more interesting if better rights go to someone, Pluna then could be interesting. They could get the aircraft fairly easily.
     
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  8. Gaucho
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    I hope they approve this soon.... as an EZE based flyer, I welcome LAN getting involved and offering me great connections that will get me from Buenos Aires to the great beaches of Northern Brazil.
     
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  9. Bay Pisco Shark
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    Shares in both companies are shooting up substantially this morning on an otherwise flat morning in the market.
     
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  10. Bay Pisco Shark
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    They both continue to shoot upward, with no official news of anything.
     
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  11. jbcarioca
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    I would like to believe the punters know something. This would be beneficial to all of us IMO.
     
  12. Gaucho
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    Any update on this...???
     
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  13. Gaucho
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    Im thinking that maybe top tier status on LAN may be worth more after this merger.... and also, it will be easier to get based out of EZE given the connection possibilities ex GRU, etc.
     
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  14. jbcarioca
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    No upates that I have seen during the last couple of weeks. I have been out of Brazil for three weeks so my usual sources have not been available to me. I will return late next week and then I will do some serious searching. We all want to knwo what will happen with this, don't we?
     
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  15. Gaucho
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    "sources".... sounds good... perhaps someone will get a special black card with a non published status after the merger....??? :p :cool:
     
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  16. jbcarioca
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    Yes, that would be nice. I know a couple of people who seem unusually well-informed, but neither is involved in TAM or LAN operations. Too bad for for my mordomia.;)
     
  17. Bay Pisco Shark
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    SANTIAGO, Sept 1 (Reuters) - A Chilean court has removed a key obstacle to airline LAN's planned takeover of Brazil's TAM, paving the way for an anti-monopoly regulator to approve the birth of one of the world's biggest airlines.
    Chile's Constitutional Tribunal on Thursday said it would not take up a complaint lodged by local airline PAL against LAN's <LAN.SN> <LFL.N> takeover of TAM Linhas Aereas <TAMM4.SA>.
    Chile's anti-monopoly regulator TDLC is probing the multi-billion dollar deal after a consumer group in Chile questioned it. It is widely expected to approve the takeover.
     
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  18. jbcarioca
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    This is interesting. Nobody on the other side thinks this is a takeover of TAM by LAN. TAM is larger than LAN, is profitable and solid, and has no serious deficiencies that would make it willing to be "taken over" by LAN. This deal is structured as a merger of equals, more or less, and it would be incredible were it to be allowed as a LAN takeover of TAM. Maybe Chilean authorities want to see it that way, but the other side of the deal has no such view. If it is expected to be so, the deal will fail IMO.
     
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  19. Gaucho
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    I dont know enough about this deal to rule which side is right... but, I do know that regardless of which side it is, that there is NO SUCH THING as a merger of equals.... in big business, mergers are like sexual intercourse... when one gives, the other receives (and please dont ask me to be more explicit... capische?).... but in the end, even if there is some make-believe co CEO ship in the first few months of the merger, what it all boils down to it that one company ends up eating the other... everything else is just bla bla... there are plenty of examples of this in corporate america and elsewhere...
     
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  20. jbcarioca
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    I cannot argue with that. Especially in this case with two families full of big egos. I will not speculate which side will have the upper hand, because that will come down to the formula and share counts, among other things. We will quickly see the reality if it is finally approved. As it is, no surprise, there are differing expectations.
     

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