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Alliances Jockey For LATAM Loyalty

By Jay Boehmer / August 17, 2010 / Contact Reporter
Business Travel News on X

The proposed merger between Latin American carriers LAN Airlines and TAM Lineas Aereas into the LATAM Airlines Group has sparked questions as to which carrier's alliance affiliation would prevail if the transaction closes, considering LAN's 10-year home in Oneworld and TAM's recently established loyalty to Star Alliance.

The carriers said a final decision on alliance loyalties would await the deal's closing, but alliances continue to jockey for position to attract carriers across growth markets in Latin America.

TAM in May this year officially became a full member of Star Alliance, the culmination of a decision in 2008 to join. Oneworld in a statement said the carriers have "stressed both airlines would continue to operate independently in the future. TAM has only recently joined Star, but Oneworld has made no secret that Brazil is one of the regions where we would like to add a partner so we will continue to explore all opportunities there."

Noting that "consolidation has already made its mark on alliance composition and may have future effects in this respect," Star Alliance in a statement said it "was already well represented across Latin America, and with TAM's decision to join Star Alliance in May of this year, this presence was further solidified. Hence, for our customers nothing changes. Both TAM and Star Alliance remain committed to delivering the Star Alliance benefits across the Latin American and global network."

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