LATAM Airlines Group S.A. is an airline holding company headquartered in Santiago, Chile.[5][6] It is considered the largest airline in Latin America [7][8] with subsidiaries in Argentina, Brazil, Colombia, Ecuador, Paraguay and Peru.[9][10][11][12][13]

History

Merger

Chile's LAN Airlines and Brazil's TAM Airlines signed a non-binding agreement to merge on 13 August 2010, followed by a binding agreement on 19 January 2011[14][15] and papers to close the merger on 22 June 2012, with TAM Airlines’ shareholders agreeing to the takeover by LAN Airlines.[16] Enrique Cueto, former CEO of LAN, became the CEO of LATAM;[17] Mauricio Rolim Amaro, formerly vice-chairman of TAM, became LATAM chairman.[18]

Government approvals

The agreement to establish LATAM was approved by Chilean authorities on 21 September 2011, with 11 restrictions. These included 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.[19] 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.[20] 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.[21]

Rebranding

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.[22][23] The rebranding included all aspects of the business, such as staff uniforms and airport check in facilities.[24] The first of the aircraft were repainted (or delivered new) in the new LATAM livery in April 2016.[citation needed]

2019-2020: Delta stake, Oneworld departure, and Enrique Cueto steps down

On 26 September 2019, Delta Air Lines announced its plans to buy 20% of LATAM for $1.9 billion, to expand Delta's access to the Latin American market. Additionally, Delta undertook to pay LATAM's exit fee from Oneworld and to take delivery of all Airbus A350 XWB aircraft that LATAM had on order.[25][26][27] On 1 January 2020, it was reported that Delta Air Lines’ acquisition of the 20% stake in LATAM group was completed.[28] Group CEO Enrique Cueto stepped down on 31 March 2020, and was succeeded by Roberto Alvo, the group’s then-current Chief Commercial Officer.[29] On 31 January 2020, LATAM announced that it would leave Oneworld three months later on 1 May.[30]

Corporate affairs

Ownership

The company's shareholders (as of January 2020)[31] are:

Shareholder Interest
Cueto Group 21.5%
Delta Air Lines 20.0%
Administradoras de Fondos de Pensiones (AFP - Chilean Pension Funds) 17.6%
Qatar Airways 10.0%
American depositary receipts (ADRs) 3.4%
Amaro Group 2.0%
Foreign investors 9.7%
Other investors 15.9%
100.0%

Operations

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.[32]

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.[33] Bogotá is the hub for the Caribbean.[34]

Subsidiary airlines of LATAM Airlines Group

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

Country Airline
Argentina LATAM Argentina
Brazil LATAM Brasil
LATAM Cargo Brasil
Chile LATAM Chile
LATAM Cargo Chile
LATAM Express
Colombia LATAM Colombia
LATAM Cargo Colombia
Ecuador LATAM Ecuador
Paraguay LATAM Paraguay
Peru LATAM Perú

See also

References

  1. ^ "LATAM Airlines Group SA". Reuters. 17 August 2018.
  2. ^ "Latam Airlines Group SA Corporate Information". Bloomberg. 27 October 2018.
  3. ^ "LATAM - Board of Directors". latamairlinesgroup.net. Retrieved 15 May 2017.
  4. ^ a b c d LATAM Airlines Group, Consolidated Financial Statements January 1, 2018 – December 31, 2018, retrieved 1 January 2020
  5. ^ "LATAM Airlines Group SA". Reuters. 17 August 2018.
  6. ^ "Latam Airlines Group SA Corporate Information". Bloomberg. 27 October 2018.
  7. ^ https://www.bloomberg.com/profiles/companies/LTM:CI-latam-airlines-group-sa
  8. ^ http://brandz.com/admin/uploads/files/BrandZ_LatAm_2017_Download.pdf
  9. ^ Webber, Jude; Lemer, Jeremy (15 August 2010), "LatAm airlines join consolidation trend", Financial Times, retrieved 16 August 2010
  10. ^ Sobie, Brendan (13 August 2010), "LAN and TAM to merge", Flight International, retrieved 14 August 2011
  11. ^ "Contact." LATAM Airlines Group. Retrieved on 25 January 2013. "Contact Pdte. Riesco 5711, 20th floor Las Condes Santiago, Chile "
  12. ^ http://i.imgur.com/IvRaefc.jpg
  13. ^ http://www.melhoresdestinos.com.br/wp-content/uploads/2015/08/logo_timeline_1024.jpg
  14. ^ "TAM and LAN announce binding agreement". TAM Linhas Aéreas. 19 January 2011. Retrieved 14 August 2011.
  15. ^ "LAN says signs non-binding deal with TAM to merge". Reuters. 13 August 2010. Retrieved 13 August 2010.
  16. ^ "BBC News - Chile's Lan and Brazil's Tam merge to create huge airline". Bbc.co.uk. 1 January 1970. Retrieved 23 June 2012.
  17. ^ "Enrique Cueto to be CEO of new LAN-TAM parent". Flight International. 13 August 2010. Retrieved 14 August 2011.
  18. ^ "LAN and TAM aim to complete merger by mid 2011". Flight Global. 14 August 2010. Retrieved 14 August 2011.
  19. ^ Seabra, Luciana (21 September 2011). "Tribunal chileno aprova fusão de TAM e LAN com 11 condições" (in Portuguese). Valor Econômico. Retrieved 26 September 2011.
  20. ^ 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.
  21. ^ "LATAM - News Release". www.latamairlinesgroup.net. Retrieved 15 May 2017.
  22. ^ "LAN and TAM to operate as LATAM with a new livery" retrieved 9 August 2015
  23. ^ "LATAM's entire fleet to have new livery by 2018" retrieved 9 August 2015
  24. ^ Mutzabaugh, Ben (7 August 2015). "So long, LAN and TAM; Airlines will soon fly under LATAM brand". USA Today Online. Retrieved 31 August 2015.
  25. ^ https://www.reuters.com/article/latam-airlines-ma-delta-air/delta-to-buy-20-of-latam-for-1-9-billion-in-regional-shake-up-idUSL2N26H1U3
  26. ^ Sider, Alison. "Delta Air Lines to Take 20% Stake in Latam Airlines for $1.9 Billion". WSJ. Retrieved 27 September 2019.
  27. ^ "LATAM Intends To Leave The oneworld Alliance". Simple Flying. 27 September 2019. Retrieved 27 September 2019.
  28. ^ "Delta Air Lines Completes LATAM Acquisition". Simple Flying. 1 January 2020. Retrieved 1 January 2020.
  29. ^ "LATAM AIRLINES GROUP REPORTS A 21.8% IMPROVEMENT IN OPERATING INCOME AND A 10.1% OPERATING MARGIN FOR THE THIRD QUARTER 2019". Retrieved 9 December 2019.
  30. ^ "Details | oneworld". www.oneworld.com. Retrieved 14 February 2020.
  31. ^ "Ownership Structure". LATAM Airlines Group SA. Retrieved 5 February 2020.
  32. ^ http://www.latamairlinesgroup.net/phoenix.zhtml?c=81136&p=irol-reportsannual
  33. ^ "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.
  34. ^ Bohorquez Aya, Edwin (7 July 2015). "América Latina le habla duro a". El Espectador (Spanish). Retrieved 5 August 2015.