LATAM’s merger: despite tough conditions, a watershed moment in Latin American aviation

LATAM Airlines Group reached a milestone in early 2016 when it operated its first flights under the LATAM unified brand - almost six years after LAN and TAM declared their intention to merge, and four years after the merger closed.

The merger of LAN and TAM was one of the most significant developments in the history of Latin American aviation. Their combination creates a regional powerhouse, with the merged entity representing nearly 50% of system ASKs in South America.

But the region's fortunes have taken a sharp downturn since LAN and TAM embarked on their merger six years ago, which has led to questions over whether the original logic for the merger remains intact. Arguably, the combination creates a much stronger force to withstand the economic strife that has swept Latin America.