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TAM and LAN estimate merger could increase annual operating income by USD700m

13-Jan-2012 10:45 AM

LAN and TAM (13-Jan-2012) estimate their merger could increase LATAM Group's annual operating income by between USD600 million and USD700 million, beginning four years after completion of the transaction, and broken down by the following fields:

  • Between USD225 million and USD260 million is expected to derive from increased revenues resulting from the combination of LAN and TAM's passenger networks and addition of new services;
  • Between USD120 million and USD125 million from increased revenues attributable to new services and best practice sharing;
  • Between USD15 million and USD25 million from the consolidation of the frequent flyer programmes;
  • Between USD100 million and USD135 million from cost savings relating to the coordination of airport and procurement activities;
  • Between USD20 million and USD25 million from cost savings resulting in the coordination of maintenance operations;
  • Between USD20 million and USD25 million from cost savings resulting from the convergence of LAN and TAM's technology information systems. [more - original PR]