A preliminary deal announced last week could create Latin America's largest airline.
Chile's Lan Airlines and Brazil's TAM announced plans to merge. A new LAN-TAM merger would create the scale and size that would make the merged carrier one of the largest 10 in the world and will likely have a profound impact on routes, competition, and pricing.
Regulators in both countries will likely scrutinize this proposed transaction, and will demand concessions from LAN-TAM to give up slots and routes that will be heavily controlled by the combined carrier.
This may take a while to sort out. The fun part will be the new name of the combined airline if the deal goes through.
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